Question: The following data represent the yields for a five-year CD for ten banks in city A and eight banks in city B. At the 0.05

The following data represent the yields for a five-year CD for ten banks in city A and eight banks in city B. At the 0.05 level of significance, is there evidence of a difference in the variance of the yield between money market accounts and five-year CDs? Assume that the population yields are normally distributed

City A              City B

1.53                 1.55

1.31                 1.42

1.29                1.04

1.08                0.46

0.84                0.32

0.61                1.06

0.52                0.83

0.37                0.53

0.33

0.16

Determine the hypotheses. Choose the correct answer below.

A. H0: σ21 ≠ σ22; H1: σ21 = σ22

B. H0: σ21 = σ22; H1: σ21 ≠ σ22

C. H0: σ21 ≥ σ22; H1: σ21 < σ22

D. H0: σ21 ≤ σ22; H1: σ21 > σ22

Calculate the FSTAT, test statistic. FSTAT = _____? (Type an integer or a decimal. Round to two decimal places as needed.)

Determine the p-value for this F-test.

p-value = ____? (Type an integer or a decimal. Round to three decimal places as needed.)

Reach a decision.

(Reject, Do not reject) H0. There is (insufficient, sufficient) evidence of a difference in the variance of the yield of five-year CDs in the two cities.

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