# Crawford Industries purchases

Crawford Industries purchases step-down electrical convertersfrom two suppliers. The converters from the two suppliers appear tohave the same average life (measured in hours) but the variabilityin useful life appears be different for the two suppliers. Inrandom samples of 9 converters from supplier A and 9 convertersfrom supplier B, the variance in the sample A was 600; the variancein the sample B was 2800. Assume that the life of the converters isnormally distributed in each population. Test the hypothesis thatthe variances of the two populations are equal, using asignificance level of 2%. Report the F statistic(Fstat) for the test.

a) 3.160

b) 6.178

c) 4.667

d) 2.965

F statistic (Fstat) for the test is4.667 (Option C iscorrect. Calculation is shown below)

Following are steps for performing F-test for theEquality of Two Population Variances:

Let s12 = Variance of Sample B,s22 = Variance of Sample A

Ho: σ12​ = σ22

Ha: σ12 ≠ σ22

Here, σ12 = Population Variance of SampleB, σ22 = Population Variance of Sample A

Thus, there is notenough evidence to claim that the variability in useful life isdifferent for the two suppliers.

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