Question

A marketing research firm wishes to compare the variance in the prices charged by two supermarket chains—Miller’s and Albert’s. The research firm, using a standardized one-week shopping plan (grocery list), makes identical purchases at 8 of each chain’s stores. The stores for each chain are randomly selected, and all purchases are made during a single week. It is found that the mean and the standard deviation of the shopping expenses at the 8 Miller’s stores are mean = $124.75 and s = 2.42. It is also found that the mean and the standard deviation of the shopping expenses at the 8 Albert’s stores are mean = $111.92 and s = 3.85. Test to see if the population variances of the Miller’s stores and the Albert’s stores are different by using α = .10

Give the hypotheses:

      H₀:

      H_a:

Give the test statistic:

Give the critical value(s):

Make the decision:

Give your conclusion:

Answer 1