F test for equality of variance

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Reference no: EM13107572

An automobile manufacturer claims the variance in the fuel consumption for its vehicles is less than the variance of similar type vehicles from another competitor. A random sample of 19 of the manufacturer's vehicles has a variance of 16.2 mpg. A random sample of 21 of the competitor vehicles has a variance of 32.5. At a significance level of 0.05, find the critical value and test statistic that would be used for this hypothesis test.

Null hypothesis:

Alternative hypothesis: (Claim)

Subscript 1 refers to the competitor data.

Subscript 2 refers to the manufacturer data.

a) Critical value = 3.50 Test statistic = 0.50

b) Critical value = 2.01 Test statistic = 0.50

c) Critical value = 3.50 Test statistic = 2.01

d) Critical value = 2.19 Test statistic = 2.01

Reference no: EM13107572

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