Question: I am thinking I solved this problem right, however I wanted a second opinion. I am thinking the answer is: 2.46 or 2.47. An investor
I am thinking I solved this problem right, however I wanted a second opinion. I am thinking the answer is: 2.46 or 2.47.
An investor wants to compare the risks associated with two different stocks. One way to measure the risk of a given stock is to measure the variation in the stock's daily price changes.
In an effort totest the claim thatthe variance in the daily stock price changesfor stock 1 is different from the variance in the daily stock price changesfor stock 2, the investor obtains a random sample of 21 daily price changes for stock 1 and 21 daily price changes for stock 2.
The summary statistics associated with these samples are: n1= 21, s1= .849, n2= 21, s2= .529.
If you follow Bluman's advice and place the larger variance in the numerator, what is the test value associated with this test of hypothesis?
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