Question

Past data indicate that the amount of money contributed by the working residents of large two cities to a volunteer rescue squad is normally distributed. Based on 9 observations, city 1 has a sample standard deciation of $1.10 and based on 6 observation from city 2, sample standard deviation is equal to $2.90.

State and conclude your hypothesis at the 0.05 level of significance if the variance in city 1 is less than the variance in city 2.

Answer 1

which implies, City 1 has lower variance than City 2