you are investigating whether the population variance of returns on the S&P 500/barra growth index changed subsequent to the october 1987 market crash. you gather the following data for 120 months of returns before october 1987 and for 120 months of returns after october 1987. you have specified a 0.05 level of significance. Time Period n Mean Monthly Return (%) Variance of Returns Before October, 1987 120 1.416 22.367

A First Course in Probability (10th Edition)
10th Edition
ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
Section: Chapter Questions
Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...
icon
Related questions
Question

you are investigating whether the population variance of returns on the S&P 500/barra

growth index changed subsequent to the october 1987 market crash. you gather the following data for 120 months of returns before october 1987 and for 120 months of returns after october 1987. you have specified a 0.05 level of significance.

Time Period

n

Mean Monthly Return (%)

Variance of Returns

Before October, 1987

120

1.416

22.367

 

 

 

 

After October, 1987

120

1.436

15.795

 

  1. Formulate null and alternative hypotheses consistent with the verbal description of the research goal.
  2. identify the test statistic for conducting a test of the hypotheses in Part a.
  3. Determine whether or not to reject the null hypothesis at the 0.05 level of signifi-cance. (use the F-tables in the back of this volume.)
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps with 1 images

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
A First Course in Probability (10th Edition)
A First Course in Probability (10th Edition)
Probability
ISBN:
9780134753119
Author:
Sheldon Ross
Publisher:
PEARSON
A First Course in Probability
A First Course in Probability
Probability
ISBN:
9780321794772
Author:
Sheldon Ross
Publisher:
PEARSON