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 than portfolio B? (b) At a=.25, is there a significant difference in the means? Reject the null hypothesis if the F calc >? Calculate the test statistic? Portfolio A: 5.11, 10.86, 12.44, 4.16, 5.59, 8.67, 7.70, 9.86, 9.64, 4.97, 11.60, 11.43 Portfolio B: 9.08, 8.70, 7.57, 6.19, 7.69, 7.03, 7.61, 7.76, 8.74, 8.89, 7.50, 9.88 1) Specify the decision rule. Reject the null hypothesis if Fcalc>____ 2) State the decision rule for .01 level if significance. Reject the null hypothesis if tcalc<____ or tcalc>____
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 than portfolio B? (b) At a=.25, is there a significant difference in the means? Reject the null hypothesis if the F calc >? Calculate the test statistic?
Portfolio A: 5.11, 10.86, 12.44, 4.16, 5.59, 8.67, 7.70, 9.86, 9.64, 4.97, 11.60, 11.43
Portfolio B: 9.08, 8.70, 7.57, 6.19, 7.69, 7.03, 7.61, 7.76, 8.74, 8.89, 7.50, 9.88
1) Specify the decision rule. Reject the null hypothesis if Fcalc>____
2) State the decision rule for .01 level if significance. Reject the null hypothesis if tcalc<____ or tcalc>____
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