Variation in the car rental rates


A researcher hypothesized that variation in the car rental rates (in US$/day) at a major city airport is less than in the car rental rates down town.

A survey found that the variance of the rental rates on 8 cars at the airport was 35.7 while the variance of the rental rates on 5 cars down town was 50.4. What test value should be used in a F test?

a. 2.26

b. 1.19

c. 1.41

d. 1.99

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Basic Statistics: Variation in the car rental rates
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