Question

You may need to use the appropriate technology to answer this question. The accounting department analyzes the variance of the weekly unit costs reported by two production departments. A sample of 16 cost reports for each of the two departments shows cost variances of 2.6 and 5.5, respectively. Is this sample sufficient to conclude that the two production departments differ in terms of unit cost variance? Use a -0.10. State the null and alternative hypotheses. Hp: 0,2 +0,2 Mo: 0,202 H0:02>2? Find the value of the test statistic. (Round your answer to two decimal places.) Find the p-value. (Round your answer to four decimal places. Remember: When using WebAssign technology to find p-values, use the entire test statistic (not the rounded answer from the previous question.)) P-value = State your conclusion. Do not reject Ho. We can condude that there is a difference between the population variances. Do not reject Ho. We cannot conclude that there is a difference between the population variances. Reject Hg. We cannot conclude that there is a difference between the population variances. Reject Ho. We can conclude that there is a difference between the population variances.

Answer 1

To Test :-

H0 :-  

o = ); 2

H1 :-  

ܕ0 £ 2

Test Statistic :-

f = 2.6 / 5.5
f = 0.47

P value = P ( f > 0.47 )
P value = 0.1582

Reject null hypothesis if P value < α = 0.1
Since P value = 0.1582 > 0.1, hence we fail to reject the null hypothesis
Conclusion :- We fail to reject H0

Fail to reject H0, we cannot conclude that there is significant difference between the populaiton variances.