Question: A study has been conducted on profits derived from the commodity versus value-added wood products sectors. Results from the raw data are summarized below (in

A study has been conducted on profits derived from the commodity versus value-added wood products sectors. Results from the raw data

are summarized below (in millions of dollars):

n X X^2

Commodity Sector 10 31.0 103.3

Value-Added Sector 9 47.7 262.5

a)Assume that you are in the commodity sector. Is it worth venturing into the value-added sector (ie, is it more profitable)? Use a hypothesis test at a 5% level of significance to draw your conclusions and make sure to test all of your assumptions.

b)Find the 99% confidence interval for the variance of profit in the value-added sector.

c)Find the 95% confidence interval for the ratio of variances for both sectors.

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