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Crawford Industries Purchases Step-Down Electrical Converters from Two Suppliers

Question 43

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Crawford Industries purchases step-down electrical converters from two suppliers.The converters from the two suppliers appear to have the same average life (measured in hours) but the variability in useful life appears be different for the two suppliers.In random samples of 8 converters from supplier A and 8 converters from supplier B, the variance in sample A was 1600; the variance in sample B was 3800.Assume that the life of the converters is normally distrusted in each population..Test the null hypothesis that the variance of population B is no greater than the variance of population A, against the alternative hypothesis that the variation of population B variance is greater than the variance of population A.Use a significance level of 5% for this one-tailed test and report your conclusion.


A) Since Fstat is greater than Fc, we cannot reject the "variance of B no greater than variance of A" null hypothesis.
B) Since Fstat is less than Fc, we cannot reject the "variance of B no greater than variance of A" null hypothesis.
C) Since Fstat is less than Fc, we can reject the "variance of B no greater than variance of A" null hypothesis.
D) Since Fstat is greater than Fc, we can reject the "variance of B no greater than variance of A" null hypothesis.

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