Question
Rates of return (annualized) in two investment portfolios are compared over the last 12 quarters. They are considered similar in safety, but portfolio B is
Rates of return (annualized) in two investment portfolios are compared over the last 12 quarters. They are considered similar in safety, but portfolioBis advertised as being "less volatile." (a) At= .025, does the sample show that portfolioAhas significantly greater variance in rates of return than portfolioB? (b) At= .025, is there a significant difference in the means?
Portfolio A | Portfolio B |
5.20 | 8.88 |
10.81 | 8.54 |
12.40 | 7.69 |
4.25 | 6.46 |
5.50 | 7.76 |
8.53 | 7.05 |
7.70 | 7.62 |
9.77 | 7.67 |
9.67 | 8.62 |
4.93 | 8.99 |
11.68 | 7.62 |
11.37 | 9.83 |
(a-1)Choose the appropriate hypotheses. AssumeA2is the variance of the Portfolio A andB2is the variance of the Portfolio B.
multiple choice 1
- H0:A2/B2 1 versusH1:A2/B2> 1
- H0:A2/B2= 1 versusH1:A2/B2 1
- H0:A2/B2 1 versusH1:A2/B2< 1
(a-2)Specify the decision rule.(Round your answer to 2 decimal places.) Reject the null hypothesis ifFcalc> . (a-3)Calculate the test statisticFcalc.(Round your answer to 2 decimal places.) Fcalc (a-4)What is your conclusion? We (Click to select) fail to reject reject the null hypothesis. (b-1)Choose the appropriate hypotheses. Assumed= company assessed value - employee assessed value. multiple choice 3
- H0:1-2= 0 vs.H1:1-2 0
- H0:1-2 0 vs.H1:1-2< 0
- H0:1-2 0 vs.H1:1-2> 0
(b-2)State the decision rule for 0.025 level of significance.(Round your answers to 3 decimal places. A negative value should be indicated by a minus sign.) Reject the null hypothesis iftcalc< ortcalc> . (b-3)Find the test statistictcalc.(Round your answer to 2 decimal places.) tcalc (b-4)What is your conclusion? We (Click to select) reject fail to reject the null hypothesis.
rev: 10_13_2020_QC_CS-234567
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