Question: In its 2016 Auto Reliability Survey, Consumer Reports asked subscribers to report their maintenance and repair costs. Most individuals are aware of the fact that

 In its 2016 Auto Reliability Survey, Consumer Reports asked subscribers to

In its 2016 Auto Reliability Survey, Consumer Reports asked subscribers to report their maintenance and repair costs. Most individuals are aware of the fact that the average annual repair cost for an automobile depends on the age of the automobile. A researcher is interested in finding out whether the variance of the annual repair costs also increases with the age of the automobile. A sample of 26 automobiles 4 years old showed a sample standard deviation for annual repair costs of $190 and a sample of 25 automobiles 2 years old showed a sample standard deviation for annual repair costs of $100. (a) State the null and alternative versions of the research hypothesis that the variance in annual repair costs is larger for the older automobiles. 012 # 02 2 Ho: $2 = 02 O Ha: 1 2 HO : 72 7 02 Ha: 01 2 2 7 02 2 Ho: 012 402 O Ha: 1 2 = 02 HO: $2 + 02 O Ha: 1 (b) At a 0.01 level of significance, what is your conclusion? Find the value of the test statistic. Find the p-value. (Round your answer to four decimal places.) p-value = State your conclusion. O Reject Ho. We can conclude that 4-year-old automobiles have a larger variance in annual repair costs compared to 2-year-old automobiles. O Reject Ho. We cannot conclude that 4-year-old automobiles have a larger variance in annual repair costs compared to 2-year-old automobiles. Do not reject Ho. We cannot conclude that 4-year-old automobiles have a larger variance in annual repair costs compared to 2-year-old automobiles. O Do not reject Ho. We can conclude that 4-year-old automobiles have a larger variance in annual repair costs compared to 2-year-old automobiles

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