1 (1 point) Assume that we draw two random samples of students from Coles college of Business. One group includes 10 economics majors and another includes 30 finance majors. From these two groups we obtain the following statistics regarding the performance on the final calculus exam: Economics: the average value is 87, the standard deviation is 9; Finance: the average value is 91, the standard deviation is 5. Please conduct a 90% significance test for the equality of the two population variances and state if such a test would reject or not the null hypothesis that the two variances are equal. Question 1 options: Fail to reject the null that the two variances are equal Reject the null that the two variances are equal There is no technique to test for equality of variances. Save Question 2 (1 point) The table below contains daily percentage price changes of two financial assets (GLD - gold ETF, SPY - S&P 500 ETF) between February 2 and 26 of 2016. Can we argue that the two assets are equally volatile? Please conduct a test for the equality of two population variances with 90% significance level and state if the null hypothesis of the equality of the two variances can be rejected. GLD daily price change (%) -0.687 0.264 0.333 1.498 -1.778 -0.600 2.433 0.619 -3.033 -0.588 4.019 0.775 -0.220 1.344 1.583 1.208 1.073 0.037 SPY daily price change (%) -0.230 1.211 0.458 -1.263 1.448 -0.047 -0.410 1.633 1.688 2.062 -1.301 -0.086 0.005 -1.346 -1.905 0.157 0.599 -1.802 Question 2 options: Fail to reject the null hypothesis that the two variances are equal Reject the null hypothesis that the two variances are equal None of the above Save Question 3 (1 point) Consider a scenario where we have two samples from two different populations. Sample 1 has the variance of 11 and contains 80 observations while Sample 2 has the variance of 15 and is comprised of 120 observations. If we conduct a test where the null hypothesis is the equality of the two population variances, which of the following tests will REJECT the null hypothesis (recall that this is a two tail test). Question 3 options: 95% confidence test 90% confidence test 85% confidence test None of the above Save Question 4 (1 point) Assume that you have two sample sets: Sample 1 has the variance of 11 and contains 20 observations; Sample 2 has the variance of 15 and contains 50 observations. If we test for the equality of the two population variances (the null hypothesis is the equality of the two population variances), then which of the following tests will reject the null hypothesis? Recall that this is a two-tail test. Question 4 options: 95% significance 90% significance 85% significance 80% significance None of the above Save Question 5 (1 point) We have two samples: sample 1, containing 20 observations and has the variance of 11, and sample 2, comprised of 50 observations with the variance of 15. If we were to conduct a 90% significance test for the equality of the two population variances, what would the upper CRITICAL value of F-statistic be for the test? Once again, keep in mind that this is a two-tail test. Question 5 options: 2.001 1.890 3.020 11.022 Save Question 6 (1 point) In which of the following tests, you would reject the null hypothesis that the two population variances are equal when the significance level is 90%? Not that it has to be repeated, but please keep in mind that these are two-tail tests. Question 6 options: Sample 1: variance is 10, number of observations is 100. Sample 2: variance is 15, number of observations is 20. Sample 1: variance is 13, number of observations is 1000. Sample 2: variance is 15, number of observations is 1000. Sample 1: variance is 9, sample size is 10. Sample 2: variance is 16, sample size is 10. Save Question 7 (1 point) Is the following a correct discussion: When conducting a 90% significance test, we have alpha equal 10%. If the test is a two-tail test, then each tail is alpha/2 or 5% of the distribution, if it is a one-tail test, then there is only one tail and it is equal to alpha, or 10% of the distribution. Question 7 options: True False