Statistics Problems - 10

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3. Award: 0.20 points    

There are two Chevrolet dealers in Jamestown, New York. The mean monthly sales at Sharkey Chevy and Dave White Chevrolet are about the same. However, Tom Sharkey, the owner of Sharkey Chevy, believes his sales are more consistent. Below are the numbers of new cars sold at Sharkey in the last 7 months and for the last 8 months at Dave White. Do you agree with Mr. Sharkey? Use the 0.01 significance level.

Sharkey 98 78 54 57 68 64 70 Dave White 75 81 81 30 82 46 58 101

Click here for the Excel Data File

1. Set up the null hypothesis and the alternate hypothesis. Null hypothesis A. B.

Choice A Choice B

2. Alternate hypothesis A. B.

Choice A Choice B

3. Calculate the standard deviation. (Round your answers to 2 decimal places.)

Standard Deviation

Sharkey

White

4. State the decision rule for 0.01 significance level. (Round your answer to 2 decimal places.)

: ≥H0 σ 2 w σ

2 s

: ≤H0 σ 2 w σ

2 s

: <H1 σ 2 w σ

2 s

: >H1 σ 2 w σ

2 s

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Reject Ho if F >

5. What is the value of F? (Round your answer to 2 decimal places.)

Value of F

6. For the value of F calculated above, choose the decision regarding the null hypothesis.

Do not Reject H0 Reject H0

7. There is more variation of the monthly sales.

True False

References

Worksheet Difficulty: 2 Intermediate

Learning Objective: 12-01 Apply the F distribution to test a hypothesis that two population variances are equal.