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    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.