A researcher hypothesizes that the variation in the amount o

A researcher hypothesizes that the variation in the amount of money spent on business dinners is greater than the variation of the amount of money spent on lunches. The variance of nine business dinners was $6.12 and the variance of 12 business lunches was $0.87. What is the test value?

Solution

Test statistic is s1^2/s2^2=(6.12/0.87)=7.03.