This hypothesis testing is trying to determine if there is a difference in variance in Price between Napa and Sonoma. It will explore whether the price spread is different based on the region.
Step 1 Define my Hypothesis
Ho: There is no difference in the Price spread between Napa and Sonoma
H1: There is a difference in the Price spread between Napa and Sonoma
Step 2: Run the HOV test (Homogeneity of Variance)
Step 3 Explain the results
Reject the Null Hypothesis.
The P-value for Levene's test is <.05 which leads us to conclude that there is a difference in the spread between the prices in Sonoma and Napa.
Step 4: Conclusion
There is a statistical difference between the spread for the prices in Sonoma and Napa. Also, if you look at the graph above you can see the spread is much wider for Napa (1) than Sonoma (2). It basically means there is more variance in Napa prices than Sonoma.