Rates of return (annualized) in two investment portfolios are compared over the last 12 quarters. They are considered similar in safety. but portfolio Bis advertised as being "less volatile." (a) At a = .025, does the sample show that portfolio A has significantly greater variance in rates of return than portfolio ? (b) At a = .025, is there a significant difference in the means? Portfolio B 9.10 Portfolio A 5.27 18.83 8.69 12.47 7.70 4.10 6.58 5.66 7.54 8.66 7.13 7.70 7.65 9.72 7.66 9.66 8.73 4.82 8.95 11.56 7.73 11.46 9.97 Dpicture Click here for the Excel Data File (a-1) Choose the appropriate hypotheses. Assume o,2 is the variance of the Portfolio A and og? is the variance of the Portfolio B. Ho: 0Aiog2s1 versus H: OA2ior?>1 Ho: OA2I0B2 = 1 versus H: OA2iog? 1

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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 advertised as being "less volatile." (a) At a = .025, does the sample show that portfolio A has significantly greater
variance in rates of return than portfolio B? (b) At a = .025, is there a significant difference in the means?
Portfolio A
Portfolio B
5.27
9.10
8.69
7.70
10.83
12.47
4.10
6.58
5.66
7.54
8.66
7.13
7.70
7.65
9.72
7.66
9.66
8.73
4.82
8.95
11.56
7.73
11.46
9.97
picture Click here for the Excel Data File
(a-1) Choose the appropriate hypotheses. Assume o,2 is the variance of the Portfolio A and og is the variance of the Portfolio B.
Ho: TA2i0g2 s1 versus H: 0A2i0g2>1
Ho: TA-i0B = 1 versus H: OA2/0B2 #1
Ho: TA-I0B21 versus H: OA2iog?<1
(0-2) Specify the decision rule. (Round your answer to 2 declmal places.)
Reject the null hypothesis if Fcale >
(a-3) Calculate the test statistic Fealc- (Round your answer to 2 decimal places.)
Feale
Transcribed Image Text: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 advertised as being "less volatile." (a) At a = .025, does the sample show that portfolio A has significantly greater variance in rates of return than portfolio B? (b) At a = .025, is there a significant difference in the means? Portfolio A Portfolio B 5.27 9.10 8.69 7.70 10.83 12.47 4.10 6.58 5.66 7.54 8.66 7.13 7.70 7.65 9.72 7.66 9.66 8.73 4.82 8.95 11.56 7.73 11.46 9.97 picture Click here for the Excel Data File (a-1) Choose the appropriate hypotheses. Assume o,2 is the variance of the Portfolio A and og is the variance of the Portfolio B. Ho: TA2i0g2 s1 versus H: 0A2i0g2>1 Ho: TA-i0B = 1 versus H: OA2/0B2 #1 Ho: TA-I0B21 versus H: OA2iog?<1 (0-2) Specify the decision rule. (Round your answer to 2 declmal places.) Reject the null hypothesis if Fcale > (a-3) Calculate the test statistic Fealc- (Round your answer to 2 decimal places.) Feale
(a-4) What is your conclusion?
We (Click to select)
the null hypothesis.
(b-1) Choose the appropriate hypotheses. Assume d= company assessed value - employee assessed value.
Ho: M1 - 2 =0 vs. H: 1 – P2#0
Ho: M1- U220 vs. Hi: My – H2<0
O Ho: 1 - 2 s0 vs. H: M1 - 12>0
(b-2) State the decision rule for 0.025 level of significance. (Use the qulck rule for the degree of freedom. Round your answers to 3
decimal places. A negative value should be Indicated by a minus sign.)
Reject the null hypothesis if tcale
| or tcalc>[
(b-3) Find the test statistic tealc- (Round your answer to 2 declmal places.)
tcale
(b-4) What is your conclusion?
WeL(Click to select) V
the null hypothesis.
Transcribed Image Text:(a-4) What is your conclusion? We (Click to select) the null hypothesis. (b-1) Choose the appropriate hypotheses. Assume d= company assessed value - employee assessed value. Ho: M1 - 2 =0 vs. H: 1 – P2#0 Ho: M1- U220 vs. Hi: My – H2<0 O Ho: 1 - 2 s0 vs. H: M1 - 12>0 (b-2) State the decision rule for 0.025 level of significance. (Use the qulck rule for the degree of freedom. Round your answers to 3 decimal places. A negative value should be Indicated by a minus sign.) Reject the null hypothesis if tcale | or tcalc>[ (b-3) Find the test statistic tealc- (Round your answer to 2 declmal places.) tcale (b-4) What is your conclusion? WeL(Click to select) V the null hypothesis.
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