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Rates ofreturn (annualized) in two investment portfolios are compared over the past 12 quarters. They are considered similar in safety, but portfolio 5 is advertised
Rates ofreturn (annualized) in two investment portfolios are compared over the past 12 quarters. They are considered similar in safety, but portfolio 5 is advertised as being \"less volatile." {a} At or: .025. does the sample show that portfolio .4 has significantly greater variance in rates of return than portfolio 8? [b) At a: 025. is there a significant difference in the means? Portfolio A Portfolio B 5.23 3.96 19.9] 3.69 12.49 7.61 4.17 6.69 554 7.77 8'69 7.96 7'89 7.68 982 7.62 9.62 3.71 4.93 3.97 11.66 7.71 11.49 9.91 (3-1) Choose the appropriate hypotheses. Assume 0A2 is the variance ofthe Portfolio A and 032 is the variance of the Portfolio 3. HO: UAZIOB2 S 1 versus H1: 0A2IUBZ >10 HO: OAZI'OB2 : 1 versus H1: GAZEUBZ i1 2 2r HO: 0A 032 21versus H1: GA i032\" (cu-2) Specify the decision rule. [Round your answers to 2 decimal places.) 0 Answer is complete and correct. Reject the null hypothesis if Fm\": > 3 4? Q . [8-3) Calculate the test statistic Fcalc. (Round your answer to 2 decimal places.) (b-1) Choose the appropriate hypotheses. Assume d= company assessed value - employee assessed value. O Ho: M1 - 12 = OVs. H1: M1- 12= 00 O Ho: M1 - 12 = 0 VS. H1: M1 - 12 = 0 O HO: M1 - 12= O VS. H1: 1 1- 12 = 0 (b-2) State the decision rule for .01 level of significance. (Round your answers to 3 decimal places. A negative value should be indicated by a minus sign.) x Answer is complete but not entirely correct. Reject the null hypothesis if tcalc -3.012 x or tcalc 3.012 x (b-3) Find the test statistic tcalc. (Round your answer to 2 decimal places.) Answer is complete and correct. tcalc 0.49
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