A Car Salesman Claims That the Variance of Prices on Convertibles

question 7

Multiple Choice

A car salesman claims that the variance of prices on convertibles is higher than the variance of prices on station wagons. The standard deviation of the list price on 16
Convertibles is $6800 and the standard deviation on 24 station wagons is $3900. What
Should the test value be?

• A) 2.25
• B) 3.04
• C) 1.74
• D) 1.53