The merchant reads in a trade magazine that stores similar

Question

Question: A local merchant owns two grocery stores at opposite ends of town. He wants to determine if the variability in business is the same at both locations. Two independent random samples yield

n₁ = 16 days          n₂ = 16 days

s₁ = $200              s₁ = $300

(a) Is there enough evidence that the two stores have different variability in sales?

(b) The merchant reads in a trade magazine that stores similar to his have a population standard deviation in daily sales of $210 and that stores with higher variability are badly managed. Is there any evidence to suggest that either one of the two stores the merchant owns has a standard deviation of sales greater than $2101.