Barron's has collected data on the top 1,000 financial advisers. Company A and Company B have many of their advisers on this list. A sample of 16 of the Company A advisers and 10 of the Company B...


Barron's has collected data on the top 1,000 financial advisers. Company A and Company B have many of their advisers on this list. A sample of 16 of the Company A advisers and 10 of the Company B advisers showed that the advisers managed many very large accounts with a large variance in the total amount of funds managed. The standard deviation of the amount managed by the Company A advisers was s1 = $584 million.
The standard deviation of the amount managed by the Company B advisers was s2 = $489 million.
Conduct a hypothesis test at ? = 0.10 to determine if there is a significant difference in the population variances for the amounts managed by the two companies. What is your conclusion about the variability in the amount of funds managed by advisers from the two firms?


State the null and alternative hypotheses.



H0: σ1
2 ≠ σ2
2

Ha: σ1
2 = σ2
2


H0: σ1
2 > σ2
2

Ha: σ1
2 ≤ σ2
2

H0: σ1
2 = σ2
2

Ha: σ1
2 ≠ σ2
2


H0: σ1
2 ≤ σ2
2

Ha: σ1
2 > σ2
2




Find the value of the test statistic. (Round your answer to two decimal places.)

(      )

Find thep-value. (Round your answer to four decimal places.)


p-value =


State your conclusion.


Do not rejectH
0. We can conclude there is a statistically significant difference between the variances for the two companies.

RejectH
0. We cannot conclude there is a statistically significant difference between the variances for the two companies.

RejectH
0. We can conclude there is a statistically significant difference between the variances for the two companies.

Do not rejectH
0. We cannot conclude there is a statistically significant difference between the variances for the two companies.

Jun 03, 2022
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