A researcher hypothesizes that the variation in the amount of money spent on business dinners is greater than the amount spent on lunches. The variance of the cost of nine business dinners (in US\$) was $6.12$ and the variance on 12 lunches was $0.87$. What test value should be used in an $F$ test?
A) 9.61
B) 7.03
C) 49.5
D) 2.65

Question

Quizplus · Accepted Answer

The F-test value is calculated by dividing the larger variance by the smaller variance: $ F = \frac{6.12}{0.87} = 7.03 $.

A Researcher Hypothesizes That the Variation in the Amount of Money