Hypothesis Test of variance
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The following hypothesis are given.
H0: σ2/1 ≤ σ2/2
H1: σ2/1 > σ2/2
A random sample of five observations from the first population resulted in a standard deviation of 12. A random sample of seven observations from the second population showed a standard deviation of 7. At the .01 significance level, is there more variation in the first population?
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Hypothesis test of variance are discussed in this solution.
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