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 thatportfolioAhas significantly greater variance in rates of return than portfolioB? (b) At= .025, is there a significant difference in the means?

Portfolio APortfolio B5.138.8510.878.5612.417.514.196.565.607.858.757.077.847.649.807.739.678.774.918.8411.547.5111.469.84

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(a-1)Choose the appropriate hypotheses. Assume_A²is the variance of the Portfolio A and_B²is 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 ifF_calc>.

(a-3)Calculate the test statisticF_calc.(Round your answer to 2 decimal places.)

F_calc

(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.

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 ift_calct_calc>.

(b-3)Find the test statistict_calc.(Round your answer to 2 decimal places.)

t_calc

(b-4)What is your conclusion?

We

(Click to select)

fail to reject

reject

the null hypothesis.rev: 10_13_2020_QC_CS-234567