The Department of Transportation claims that there is no dif

The Department of Transportation claims that there is no difference between the variation of federal highway money distributed to the northeastern states and the variation of federal money distributed to the central states. The standard deviation for 11 northeastern states is 0.81 and the standard deviation for 12 central states is 0.35. Using a 5% level, what is the critical value?

Solution

Using an F test, here

df1 = n1 - 1 = 10

df2 = n2 - 1 = 11

Thus, using table/technology, at 0.05 signficance, the critical values are (as this is two tailed, it says \"no difference\")

Fcrit = 0.283633895 and 3.525671716