A Car Salesman Claims That the Variance of Prices on Convertibles

question 60

Multiple Choice

A car salesman claims that the variance of prices on convertibles is higher than the variance on station wagons. The standard deviation of 16 convertibles is $6,800 and the standard deviation of 24 station
Wagons is $3,900. For $\alpha = 0.05$ what is the test value?

• A) 3.00
• B) 3.04
• C) 2.78
• D) 2.33

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