The sales price (in $1,000)of three-bedroom apartments in two cities: Houston,Texas,and Orlando,Florida are given in the following table.Houston is known to have lower house prices than Orlando;however,it is not clear if it also has lesser variability in its prices. a.State the null and the alternative hypotheses in order to determine if the variance of house price in Houston is less than that in Orlando.
B)What assumption regarding the population is necessary to implement this step?
C)Test the hypothesis at α = 0.05.What is your conclusion?

Question

The sales price (in $1,000)of three-bedroom apartments in two cities: Houston,Texas,and Orlando,Florida are given in the following table.Houston is known to have lower house prices than Orlando;however,it is not clear if it also has lesser variability in its prices.  a.State the null and the alternative hypotheses in order to determine if the variance of house price in Houston is less than that in Orlando.
B)What assumption regarding the population is necessary to implement this step?
C)Test the hypothesis at α = 0.05.What is your conclusion?

Quizplus · Accepted Answer

The Answer of The sales price (in $1,000)of three-bedroom apartments in two cities: Houston,Texas,and Orlando,Florida are given in the following table.Houston is known to have lower house prices than Orlando;however,it is not clear if it also has lesser variability in its prices.  a.State the null and the alternative hypotheses in order to determine if the variance of house price in Houston is less than that in Orlando.
B)What assumption regarding the population is necessary to implement this step?
C)Test the hypothesis at α = 0.05.What is your conclusion?

The Sales Price (In $1,000)of Three-Bedroom Apartments in Two Cities