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

question 96

Essay

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 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?

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