SOLUTION: **Help** 12-4 A real estate agent in the coastal area of Georgia wants to compare the variation in the selling price of homes on the oceanfront with those one to three blocks from

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Question 1202980: **Help** 12-4
A real estate agent in the coastal area of Georgia wants to compare the variation in the selling price of homes on the oceanfront with those one to three blocks from the ocean. A sample of 21 oceanfront homes sold within the last year revealed the standard deviation of the selling prices was $45,600. A sample of 18 homes, also sold within the last year, that were one to three blocks from the ocean revealed that the standard deviation was $21,330. At the 0.01 significance level, can we conclude that there is more variation in the selling prices of the oceanfront homes?

c. What is the decision rule? Use the 0.01 significance level. (Round your answer to 2 decimal places.)
d. What is the value of F? (Round your answer to 2 decimal places.)

Answer by Theo(13342) (Show Source):
You can put this solution on YOUR website!
n1 = 21
n2 = 18
dof1 = 20
dof2 = 17
critical f-stat = 20/17 = 1.1765.
sd1 = 45600
sd2 = 21330
v1 = 45600^2
v2 = 21330^2
test f-stat = 45600^2 / 21330^2 = 4.57
test f-stat is greater than critical f-stat, therefore variation is assumed to be greater for sampe 1 than for saple 2, i.e. they are not equal.

here's a refeence.

http://www.statistics4u.com/fundstat_eng/cc_test_2sample_ftest.html

here's a critical f-stat calcjulator.

https://www.danielsoper.com/statcalc/calculator.aspx?id=4