Exhibit 11-2
We are interested in determining whether or not the variances of the sales at two music stores (A and B) are equal. A sample of 26 days of sales at store A has a sample standard deviation of 30 while a sample of 16 days of sales from store B has a sample standard deviation of 20.
-Refer to Exhibit 11-2. The test statistic is
A)1.50
B)0.67
C)1.56
D)2.25

Question

Quizplus · Accepted Answer

The test statistic for testing equality of variances between two samples is given by:

F = s^21 / s^22

Where s^21 is the sample variance of the larger sample (store A) and s^22 is the sample variance of the smaller sample (store B).

Substituting the given values, we get:

F = (30)^2 / (20)^2
F = 2.25

Therefore, the test statistic is 2.25.

Exhibit 11-2 We Are Interested in Determining Whether or Not the Variances