A study found that the variance in the number of vehicles owned or leased by subscribers...
A study found that the variance in the number of vehicles owned or leased by subscribers to a magazine is .094. Assume a sample of 12 subscribers to another magazine provided the following data on the number of vehicles owned or leased: 1,1,1,0,3,2,1,1,2,1,0, and 1
a) Compute the sample variance in the number of vehicles owned or leased by the subscribers (to 4 decimals).
b)Test the hypothesis to determine whether the variance in the number of vehicles owned or leased by subscribers of the other magazine differs from .
Calculate the value of the test statistic (to 3 decimals).
Homework Answers
a) The sample mean is 
The sample variance is
b)The hypotheses are
We have the distribution of sample variance is such that
. Here 
The sample test statistic is
The critical values are (
)
Since the test statistic is greater than critical value
, we reject the null hypothesis.
We are 99% confident that the variance is different from .094.
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