Barrons has collected data on the top 1000 financial advisers. Merrill Lynch and Morgan Stanley have many
Question:
Barron’s has collected data on the top 1000 financial advisers. Merrill Lynch and Morgan Stanley have many of their advisers on this list. A sample of 16 of the Merrill Lynch advisers and 10 of the Morgan Stanley advisers showed that the advisers managed many very large accounts with a large variance in the total amount of funds managed. The standard deviation of the amount managed by the Merrill Lynch advisers was s1 = $587 million. The standard deviation of the amount managed by the Morgan Stanley advisers was s2 = $489 million. Conduct a hypothesis test at α = .10 to determine if there is a significant difference in the population variances for the amounts managed by the two companies. What is your conclusion about the variability in the amount of funds managed by advisers from the two firms?
Step by Step Answer:
Statistics For Business & Economics
ISBN: 9781337901062
14th Edition
Authors: David R. Anderson, Dennis J. Sweeney, Thomas A. Williams, Jeffrey D. Camm, James J. Cochran