Find the value of the test statistic. (Round your answer to three decimal places.) Find the p-value. (Round your answer to four decimal places.) p-value = State your conclusion. O Reject Ho. We cannot conclude the variance in bond yields has changed. Do not reject H,. We can conclude the variance in bond yields has changed. O Do not reject Ho. We cannot conclude the variance in bond yields has changed. Reject Ho. We can conclude the variance in bond yields has changed.

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(c) Use a = 0.05 to conduct the hypothesis test formulated in part (b). What is your conclusion?
Find the value of the test statistic. (Round your answer to three decimal places.)
Find the p-value. (Round your answer to four decimal places.)
p-value =
State your conclusion.
O Reject Ho. We cannot conclude the variance in bond yields has changed.
Do not reject H,. We can conclude the variance in bond yields has changed.
Do not reject Ho. We cannot conclude the variance in bond yields has changed.
Reject Ho. We can conclude the variance in bond yields has changed.
Transcribed Image Text:(c) Use a = 0.05 to conduct the hypothesis test formulated in part (b). What is your conclusion? Find the value of the test statistic. (Round your answer to three decimal places.) Find the p-value. (Round your answer to four decimal places.) p-value = State your conclusion. O Reject Ho. We cannot conclude the variance in bond yields has changed. Do not reject H,. We can conclude the variance in bond yields has changed. Do not reject Ho. We cannot conclude the variance in bond yields has changed. Reject Ho. We can conclude the variance in bond yields has changed.
At the end of a certain year, the variance in the semiannual yields of overseas government bond was o? = 0.70. A group of bond investors met at that time to discuss future trends in overseas bond yields. Some expected the variability in overseas bond yields to increase
and others took the opposite view. The following table shows the semiannual yields for 12 overseas countries as of March 6 of the following year.
Country
Yield (%)
Australia
3.98
Belgium
3.78
Canada
2.95
Denmark
3.55
France
3.44
Germany
3.08
Italy
4.51
Japan
1.32
Netherlands
3.53
Spain
3.90
Sweden
2.48
United Kingdom
3.76
(a) Compute the mean (in percent), variance, and standard deviation (in percent) of the overseas bond yields as of the March 6 date. (Round your answers to four decimal places.)
mean
%
variance
standard deviation
%
(b) Develop hypotheses to test whether the sample data indicate that the variance in bond yields has changed from that at the end of the initial year.
O Ho: o 2 0.70
H: o2 < 0.70
Ho: o2 = 0.70
H: 02 = 0.70
O Ho: o2 > 0.70
H: o2 s 0.70
O Ho: o2 s 0.70
H: o2 > 0.70
O Ho: o2 < 0.70
H: o2 2 0.70
Transcribed Image Text:At the end of a certain year, the variance in the semiannual yields of overseas government bond was o? = 0.70. A group of bond investors met at that time to discuss future trends in overseas bond yields. Some expected the variability in overseas bond yields to increase and others took the opposite view. The following table shows the semiannual yields for 12 overseas countries as of March 6 of the following year. Country Yield (%) Australia 3.98 Belgium 3.78 Canada 2.95 Denmark 3.55 France 3.44 Germany 3.08 Italy 4.51 Japan 1.32 Netherlands 3.53 Spain 3.90 Sweden 2.48 United Kingdom 3.76 (a) Compute the mean (in percent), variance, and standard deviation (in percent) of the overseas bond yields as of the March 6 date. (Round your answers to four decimal places.) mean % variance standard deviation % (b) Develop hypotheses to test whether the sample data indicate that the variance in bond yields has changed from that at the end of the initial year. O Ho: o 2 0.70 H: o2 < 0.70 Ho: o2 = 0.70 H: 02 = 0.70 O Ho: o2 > 0.70 H: o2 s 0.70 O Ho: o2 s 0.70 H: o2 > 0.70 O Ho: o2 < 0.70 H: o2 2 0.70
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