An employment information service claims that the standard deviation of the annual salaries for actuaries is greater
Question:
An employment information service claims that the standard deviation of the annual salaries for actuaries is greater in New York than in California. You select a sample of actuaries from each state. The results of each survey are shown in the figure. At α = 0.05, can you support the service’s claim?
(a) Identify the claim and state H0 and Ha,
(b) Find the critical value and identify the rejection region,
(c) Find the test statistic F,
(d) Decide whether to reject or fail to reject the null hypothesis,
(e) Interpret the decision in the context of the original claim. Assume the samples are random and independent, and the populations are normally distributed. If convenient, use technology.
Step by Step Answer:
Elementary Statistics Picturing The World
ISBN: 9780321911216
6th Edition
Authors: Ron Larson, Betsy Farber