Assume the following data values are from a 2016 Auto Guide. The guide compared various parameters of U.S.- and foreign-made cars. This report centers on the price of an optional automatic transmission. Which country has the greater variability in the price of automatic transmissions? Answer the following questions.

1. What is the null hypothesis?
2. What test statistic is used to test for any significant differences in the variances?
3. Is there a significant difference in the variability in the prices between the German cars and the U.S. cars?
4. What effect does a small sample size have on the standard deviations?
5. What degrees of freedom are used for the statistical test?
6. Could two sets of data have significantly different variances without having significantly different means?

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Germany (2016) U.S. Cars (2016) BMW 6 Series $77,300 Ford Mustang $47,795 Audi TT $46,400 Chevrolet Corvette $55,400 Porsche Boxster $82,100 Dodge Challenger $62,495 BMW 2 Series $50,750 Dodge Viper S87,895