Question: Suppose a recent study showed that the average annual amount spent by a Nova Scotia household on hotdog wieners was $23.84 compared with an average

Suppose a recent study showed that the average annual amount spent by a Nova Scotia household on hotdog wieners was $23.84 compared with an average of $19.83 for Alberta households. Suppose a random sample of 12 Nova Scotia households showed that the standard deviation of these purchases was $7.52, whereas a random sample of 15 Alberta households resulted in a standard deviation of $6.08. Do these samples provide enough evidence to conclude that the variance of annual hotdog wiener purchases for Nova Scotia households is greater than the variance of annual hotdog wiener purchases for Alberta households? Let α be 0.05. Assume amounts spent per year on hotdog wieners are normally distributed. Suppose the data did show that the variance among Nova Scotia households is greater than that among Alberta households. What might this variance mean to decision-makers in the hotdog wiener industry?

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