Answered step by step
Verified Expert Solution
Link Copied!
Question
1 Approved Answer

A stockbroker at Critical Securities reported that the mean rate of return on a sample of 10 oil stocks was 12.6% with a standard deviation

image text in transcribedimage text in transcribedimage text in transcribed

A stockbroker at Critical Securities reported that the mean rate of return on a sample of 10 oil stocks was 12.6% with a standard deviation of 3.9%. The mean rate of return on a sample of 8 utility stocks was 10.9% with a standard deviation of 3.5%. At the 0.05 significance level, can we conclude that there is more variation in the oil stocks? a. State the null and alternate hypotheses. = Ho: 042 = 022 and 41:02 +022 O HO:02=022 and 11:02=02 022 O Ho: 0,27 022 and 17:0727022 Ho:0,25022 and 14: 01202 2 b. State the decision rule. (Round your answer to 2 decimal places.) Reject Ho where F> c. Compute the value of the test statistic. (Round your answer to 2 decimal places.) The test statistic is d. Compute the p-value. (Round your answer to 4 decimal places.) p-value e. What is your decision regarding Ho? Decision: I HO f. Interpret the result. There is the variations in the oil stocks is larger than the utility stocks

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image
Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting Tools For Business Decision Making

Authors: Jerry J. Weygandt, Paul D. Kimmel, Ibrahim M. Aly, Donald E. Kieso

6th Canadian Edition

1119731828, 9781119731825

More Books

Students explore these related Accounting questions