Test the claim that the population variance of percentage yields on assets for South Korean companies is higher than that for companies in Sweden. Use a 5% level of significance. How could your test conclusion relate to an economist's question regarding volatility of corporate productivity of large companies in South Korea compared with those in Sweden? (a) What is the level of significance? State the null and alternate hypotheses. Ho: ?12 = ?22; H1: ?12 > ?22Ho: ?12 > ?22; H1: ?12 = ?22 Ho: ?22 = ?12; H1: ?22 > ?12Ho: ?12 = ?22; H1: ?12 ≠ ?22 (b) Find the value of the sample F statistic. (Use 2 decimal places.) What are the degrees of freedom? dfN dfD What assumptions are you making about the original distribution? The populations follow dependent normal distributions. We have random samples from each population.The populations follow independent chi-square distributions. We have random samples from each population. The populations follow independent normal distributions. We have random samples from each population.The populations follow independent normal distributions. (c) Find or estimate the P-value of the sample test statistic. p-value > 0.1000.050 < p-value < 0.100 0.025 < p-value < 0.0500.010 < p-value < 0.0250.001 < p-value < 0.010p-value < 0.001 (d) Based on your answers in parts (a) to (c), will you reject or fail to reject the null hypothesis? At the ? = 0.05 level, we reject the null hypothesis and conclude the data are not statistically significant.At the ? = 0.05 level, we reject the null hypothesis and conclude the data are statistically significant. At the ? = 0.05 level, we fail to reject the null hypothesis and conclude the data are not statistically significant.At the ? = 0.05 level, we fail to reject the null hypothesis and conclude the data are statistically significant. (e) Interpret your conclusion in the context of the application. Fail to reject the null hypothesis, there is sufficient evidence that the variance in percentage yields on assets is greater in the South Korean companies.Reject the null hypothesis, there is insufficient evidence that the variance in percentage yields on assets is greater in the South Korean companies. Reject the null hypothesis, there is sufficient evidence that the variance in percentage yields on assets is greater in the South Korean companies.Fail to reject the null hypothesis, there is insufficient evidence that the variance in percentage yields on assets is greater in the South Korean companies.
Contingency Table
A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.
Binomial Distribution
Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.
A random sample of leading companies in South Korea gave the following percentage yields based on assets.
2.3 | 2.2 | 4.1 | 1.5 | 0.9 | 3.6 | 2.4 |
0.2 | 1.7 | 1.8 | 1.4 | 5.4 | 1.1 |
Use a calculator to verify that s2 ≈ 2.025 for these South Korean companies.
Another random sample of leading companies in Sweden gave the following percentage yields based on assets.
2.4 | 3.7 | 3.7 | 1.6 | 3.7 | 2.8 | 2.3 | 3.5 | 2.8 |
Use a calculator to verify that s2 ≈ 0.573 for these Swedish companies.
Test the claim that the population variance of percentage yields on assets for South Korean companies is higher than that for companies in Sweden. Use a 5% level of significance. How could your test conclusion relate to an economist's question regarding volatility of corporate productivity of large companies in South Korea compared with those in Sweden?
State the null and alternate hypotheses.
(b) Find the value of the sample F statistic. (Use 2 decimal places.)
What are the degrees of freedom?
dfN | |
dfD |
(c) Find or estimate the P-value of the sample test statistic.
(d) Based on your answers in parts (a) to (c), will you reject or fail to reject the null hypothesis?
(e) Interpret your conclusion in the context of the application.
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