You may need to use the appropriate technology to answer this question. Barron's has collected data on the top 1,000 financial advisers. Company A and Company B have many of their advisers on this list. A sample of 16 of the Company A advisers and 10 of the Company B 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 Company A advisers was s1 = $582 million. The standard deviation of the amount managed by the Company B advisers was s2 = $484 million. Conduct a hypothesis test at ? = 0.10 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? State the null and alternative hypotheses. H0: ?12 ≠ ?22 Ha: ?12 = ?22 H0: ?12 ≤ ?22 Ha: ?12 > ?22 H0: ?12 = ?22 Ha: ?12 ≠ ?22 H0: ?12 > ?22 Ha: ?12 ≤ ?22 Find the value of the test statistic. (Round your answer to two decimal places.) Find the p-value. (Round your answer to four decimal places.) p-value = State your conclusion. Do not reject H0. We can conclude there is a statistically significant difference between the variances for the two companies.Reject H0. We can conclude there is a statistically significant difference between the variances for the two companies. Do not reject H0. We cannot conclude there is a statistically significant difference between the variances for the two companies.Reject H0. We cannot conclude there is a statistically significant difference between the variances for the two companies.
Inverse Normal Distribution
The method used for finding the corresponding z-critical value in a normal distribution using the known probability is said to be an inverse normal distribution. The inverse normal distribution is a continuous probability distribution with a family of two parameters.
Mean, Median, Mode
It is a descriptive summary of a data set. It can be defined by using some of the measures. The central tendencies do not provide information regarding individual data from the dataset. However, they give a summary of the data set. The central tendency or measure of central tendency is a central or typical value for a probability distribution.
Z-Scores
A z-score is a unit of measurement used in statistics to describe the position of a raw score in terms of its distance from the mean, measured with reference to standard deviation from the mean. Z-scores are useful in statistics because they allow comparison between two scores that belong to different normal distributions.
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