# Question: A large department store wants to test whether the variance

A large department store wants to test whether the variance of waiting time in two checkout counters is approximately equal. Two independent random samples of 25 waiting times in each of the counters gives s1 = 2.5 minutes and s2 = 3.1 minutes. Carry out the test of equality of variances, using α = 0.02.

**View Solution:**## Answer to relevant Questions

An important measure of the risk associated with a stock is the standard deviation, or variance, of the stock's price movements. A financial analyst wants to test the one-tailed hypothesis that stock A has a greater risk ...For problem 8-50, construct a 95% confidence interval for the difference in stock performance. In problem "Strategizing for the future" is management lingo for sessions that help managers make better decisions. Managers who ...In problem 8-57, assume that the data points are paired as listed and that each pair represents performance of the two boats at a single trial. Conduct the test, using this assumption. What is the advantage of testing using ...Refer to problem 8-48. Test the null hypothesis that the variance of the cost of repairing a broken leg is equal to the variance of the cost of repairing an injured knee. In problem According to Money, the average cost of ...Refer to the situation of problem 8-72. The study also compared average portfolios of microloans. For the Alpha group it was $50 million, and for the Beta group it was $14 million. Assume the Alpha group had a standard ...Post your question