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Testing Hypothesis for variances

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A sample of 25 concession stand purchases, at the October 22 matinée "Bride of Chucky," showed a mean purchase of $5.29 with a standard deviation of $3.02. For the October 26 evening showing of the same movie, for a sample of 25 purchases the mean was $5.12 with a standard deviation of $2.14. The means appear to be very close, but not the variances. At alpha = .05, is there a difference in variances? Show all steps clearly, including an illustration of the decision rule.

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Solution Summary

Solution describes the steps for testing whether there is a significant difference in variances or not.

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Solution:

We are given
Sample size on October 22=n1=25
Std deviation =s1=3.02
Sample size on October 26=n2=25
Std ...

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  • BEng (Hons) , Birla Institute of Technology and Science, India
  • MSc (Hons) , Birla Institute of Technology and Science, India
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