We are interested in estimating whether or not the variances of sales at two small grocery stores are equal. A sample of 21 days of sales at Store A and a sample of 16 days of sales at Store B indicated the following.
Store A Store B
n1 = 21 n2 = 16
s1= 800 s2 = 400
a. Give the hypotheses to be tested.
b. Calculate the test statistic.
c. Find out the critical value of F at 95% confidence.
d. Calculate the p-value and use it to test the above hypotheses.