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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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