This question involves the 2-SampleFTest test for comparing two unknown population variances (or SD’s) and the ANOVA test. Clear statement of…

This question involves the 2-SampleFTest test for comparing two unknown population variances (or SD’s) and the ANOVA test.      

1. Clear statement of hypotheses, with the correct parameter(s)

2. An indication of the test used

3. The test statistic and p-value

4. An indication of the statistical decision (i.e. whether or not to reject Ho)

    along with an explanation.

5. An interpretation of the statistical decision in the context of the problem. 

#1)  The annual salaries for a random sample of 16 actuaries working in New York have a standard deviation of $16,000.  The annual salaries of a random sample of 17 actuaries working in California have a standard deviation of $9600.  Using a significance level of a = .05, is there significant evidence that the standard deviation of the annual salaries is greater in New York than it is in California?  

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