The president of a bank believes that the variance of the deposits of suburban customers is less than the variance of city customers. Below you are given the results of samples taken from suburban and city customers.
a.State the null and alternative hypotheses to be tested.
b.Compute the test statistic.
c.The null hypothesis is to be tested at the 5% level of significance. State the decision rule for the test.
d.What do you conclude?

Question

The president of a bank believes that the variance of the deposits of suburban customers is less than the variance of city customers. Below you are given the results of samples taken from suburban and city customers.  
a.State the null and alternative hypotheses to be tested.
b.Compute the test statistic.
c.The null hypothesis is to be tested at the 5% level of significance. State the decision rule for the test.
d.What do you conclude?

Quizplus · Accepted Answer

The Answer of The president of a bank believes that the variance of the deposits of suburban customers is less than the variance of city customers. Below you are given the results of samples taken from suburban and city customers.  
a.State the null and alternative hypotheses to be tested.
b.Compute the test statistic.
c.The null hypothesis is to be tested at the 5% level of significance. State the decision rule for the test.
d.What do you conclude?

The President of a Bank Believes That the Variance of the Deposits