A researcher hypothesized that the variation in the car rental rates (in US\$/day) at a major city airport is less than in the car rental rates down town. A survey found that the variance of the rental rates on 8 cars at the airport was $35.7$ while the variance of the rental rates on 5 cars down town was $50.4$. What test value should be used in a $F$ test?
A) 1.19
B) 2.26
C) 1.41
D) 1.99

Question

Quizplus · Accepted Answer

The test value for an F test comparing two variances is calculated by dividing the larger variance by the smaller variance. In this case, the larger variance is 50.4 (downtown) and the smaller variance is 35.7 (airport). Thus, the test value is $50.4 / 35.7 = 1.41$.

A Researcher Hypothesized That the Variation in the Car Rental 35.735.735.7

A Researcher Hypothesized That the Variation in the Car Rental $35.7$