Data were collected on the top 1000 financial advisers by Barron’s. Merrill lynch had239 people on the list and Morgan stanley had 121 people on the list. a sample of 16 ofthe Merrill lynch advisers and 10 of the Morgan stanley advisers showed that the advisersmanaged 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 wass1 = $587 million. the standard deviation of the amount managed by the Morgan stanleyadvisers was s2 = $489 million. conduct a hypothesis test at a = .10 to determine if thereis a significant difference in the population variances for the amounts managed by the twocompanies. what is your conclusion about the variability in the amount of funds managedby advisers from the two firms?
Data were collected on the top 1000 financial advisers by Barron’s. Merrill lynch had
239 people on the list and Morgan stanley had 121 people on the 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 a = .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?
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