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    Hypothesis testing for two variances

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    Independent random samples were taken from normal distributions of the yearly production of ships built by the International Ship Building Company under (1) a fixed-position layout and (2) a project layout. The results are given in the accompanying table. Test the null hypothesis that the variance for the fixed-position layout is equal to that for the project layout. Use .05 for the level of significance.
    Fixed-position layout 8 0 1 5 1 5 1
    Project layout 6 1 1 1 4 4 4

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    Solution Summary

    Step by step method for testing the hypothesis under 5 step approach is discussed here. Excel template for each problem is also included. This template can be used to obtain the answers of similar problems.

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