Barron's has collected data on the top 1,000 financial advisers. Company A and Company B have many of their advisers on
Posted: Mon Apr 11, 2022 6:30 am
Barron's has collected data on the top 1,000 financial advisers.
Company A and Company B have many of their advisers on
this list. A sample of 16 of the Company A advisers and
10 of the Company B 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 Company A advisers was
s1 = $583 million.
The standard deviation of the amount managed by
the Company B advisers was
s2 = $485 million.
Conduct a hypothesis test at
𝛼 = 0.10
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?
State the null and alternative hypotheses.
H0: 𝜎12 > 𝜎22
Ha: 𝜎12 ≤ 𝜎22
H0: 𝜎12 = 𝜎22
Ha: 𝜎12 ≠ 𝜎22
H0: 𝜎12 ≠ 𝜎22
Ha: 𝜎12 = 𝜎22
H0: 𝜎12 ≤ 𝜎22
Ha: 𝜎12 > 𝜎22
Find the value of the test statistic. (Round your answer to two
decimal places.)
Find the p-value. (Round your answer to four
decimal places.)
p-value =
State your conclusion.
Do not reject H0. We can conclude there
is a statistically significant difference between the variances for
the two companies.Reject H0. We can
conclude there is a statistically significant difference between
the variances for the two companies. Do not
reject H0. We cannot conclude there is a
statistically significant difference between the variances for the
two companies.Reject H0. We cannot
conclude there is a statistically significant difference between
the variances for the two companies.
Company A and Company B have many of their advisers on
this list. A sample of 16 of the Company A advisers and
10 of the Company B 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 Company A advisers was
s1 = $583 million.
The standard deviation of the amount managed by
the Company B advisers was
s2 = $485 million.
Conduct a hypothesis test at
𝛼 = 0.10
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?
State the null and alternative hypotheses.
H0: 𝜎12 > 𝜎22
Ha: 𝜎12 ≤ 𝜎22
H0: 𝜎12 = 𝜎22
Ha: 𝜎12 ≠ 𝜎22
H0: 𝜎12 ≠ 𝜎22
Ha: 𝜎12 = 𝜎22
H0: 𝜎12 ≤ 𝜎22
Ha: 𝜎12 > 𝜎22
Find the value of the test statistic. (Round your answer to two
decimal places.)
Find the p-value. (Round your answer to four
decimal places.)
p-value =
State your conclusion.
Do not reject H0. We can conclude there
is a statistically significant difference between the variances for
the two companies.Reject H0. We can
conclude there is a statistically significant difference between
the variances for the two companies. Do not
reject H0. We cannot conclude there is a
statistically significant difference between the variances for the
two companies.Reject H0. We cannot
conclude there is a statistically significant difference between
the variances for the two companies.