× Didn't find what you were looking for? Ask a question
Top Posters
Since Sunday
5
a
5
k
5
c
5
B
5
l
5
C
4
s
4
a
4
t
4
i
4
r
4
Home Q & A Board Science-Related Homework Help Mathematics
New Topic  
Stevbo Stevbo
wrote...
Posts: 100
Rep: 0 0
7 years ago
An investor wants to compare the risks associated with two different stocks. One way to measure the risk of a given stock is to measure the variation in the stock’s daily price changes.

In an effort to test the claim that the variance in the daily stock price changes for stock 1 is different from the variance in the daily stock price changes for stock 2, the investor obtains a random sample of 21 daily price changes for stock 1 and 21 daily price changes for stock 2.

The summary statistics associated with these samples are: n1 = 21, s1 = .848, n2 = 21, s2 = .529.

If you follow Bluman's advice and place the larger variance in the numerator when computing the test value, at the .05 level of significance, what is the critical value associated with this test of hypothesis? Place your answer, rounded to 2 decimal places, in the blank. For example, 3.45 would be a legitimate entry.
Read 619 times
1 Reply

Related Topics

Replies
wrote...
#1
Staff Member
Educator
7 years ago
If you follow Bluman's advice and place the larger variance in the numerator, what is the test value associated with this test of hypothesis?

: F = .849^2/.529^2 =2.576.

. F = .848^2/.529^2 = 2.570

Yes, the p-value associated with this test is 0.0264
Mastering in Nutritional Biology
Tralalalala Slight Smile
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1267 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Related Images
  
 339
  
 303
  
 268
Your Opinion
Which 'study break' activity do you find most distracting?
Votes: 741
Previous poll results: Which industry do you think artificial intelligence (AI) will impact the most?