Comparing two variances. a. Identify the claim and state Ho and Ha, b. determine the critical value and the rejection region, c. calculate the test static, d. decide whether to reject or fail to reject the null hypothesis, and e. interpret the decision in the context of the original claim. Assume samples are independent and each population has a normal distribution.
The annual salaries for a random sample of 16 actuaries working in New York have a standard deviation of $14,900. The annual salaries for a random sample of 17 actuaries working in California have a standard deviation of $9600. Using this information, can you conclude that the standard deviation in the annual salaries for actuaries is greater in NY than in California? Use a = 0.05.
Actuaries in NY Actuaries in CA
s1=$14,900 s2=$9600
n1=16 n2=17