[Step-by-Step] A manager of a computer software store thinks that, even though the average number of buyers or clients is approximately the same as 5 years


Question: A manager of a computer software store thinks that, even though the average number of buyers or clients is approximately the same as 5 years ago, the number of buyers or clients is more volatile that it was 5 years ago. In a sample of 31 weeks from 5 years ago, the standard deviation of buyers was 26 per week while in a sample of 26 weeks over the past year the standard deviation is 22 per week. Test the hypothesis at the 1% level of significance that the variance has increased from 5 years ago.

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