Suppose we form a sample variance from a sequence of IID Gaussian random variables and then form

Question:

Suppose we form a sample variance

from a sequence of IID Gaussian random variables and then form another sample variance

from a different sequence of IID Gaussian random variables that are independent from the first set. We wish to determine if the true variances of the two sets of Gaussian random variables are the same or if they are significantly different, so we form the ratio of the sample variances

Suppose we form a sample variancefrom a sequence of IID

to see if this quantity is either large or small compared to 1. Assuming that the and the Yk are both standard normal, find the PDF of the statistic and show that it follows an F F distribution ( see Appendix D, Section D. 1.7).

Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...