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The given information is available for two samples selected from independent normally distributed populations. Population A: n1=25, S1^2 = 213.9 Population B: n2 =25, S2^2 = 65.5 In testing the null hypothesis H0: sigma1^2 = sigma2^2, the value of FSTAT is 3.27. There are 24 degrees of freedom in the numerator and 24 degrees of freedom in the denominator. For the alternative hypothesis H1: sigma1^2 not = sigma2^2, at the alpha = 0.01 level of significance, the critical value is 2.97. What is the correct statistical decision? Choose the correct answer below. A. Reject H0. There is insufficient evidence that the population variances are different. B. Do not reject H0. There is sufficient evidence that the population variances are different C. Reject H0. There is sufficient evidence that the population variances are different. D Do not reject H0. There is insufficient evidence that the population variances are different.

Solution

Answer: C. Reject Ho. There is sufficient evidence that the population variances are different.

Since F=3.27 is larger than 2.97, we reject HO.