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There is more variation in the selling prices of the oceanfront homes.
A real estate agent in the coastal area of Georgia wants to compare the variation in the selling price of homes on the oceanfront with those one to three blocks from the ocean. A sample of 21 oceanfront homes sold within the last year revealed the standard deviation of the selling prices was $45,600. A sample of 18 homes, also sold within the last year, that were one to three blocks from the ocean revealed that the standard deviation was $21,330. At the .01 significance level, can we conclude that there is more variation in the selling prices of the oceanfront homes?
In the real world, given null hypothesis is false; but the collected data lead to the null hypothesis being accepted. That is, the data lead to a failure to reject null hypothesis.
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