The following data represent the yields for a five-year CD for ten banks in city A and
Question:
The following data represent the yields for a five-year CD for ten banks in city A and eight banks in city B. At the 0.05 level of significance, is there evidence of a difference in the variance of the yield between money market accounts and five-year CDs? Assume that the population yields are normally distributed
City A City B
1.53 1.55
1.31 1.42
1.29 1.04
1.08 0.46
0.84 0.32
0.61 1.06
0.52 0.83
0.37 0.53
0.33
0.16
Determine the hypotheses. Choose the correct answer below.
A. H0: σ21 ≠ σ22; H1: σ21 = σ22
B. H0: σ21 = σ22; H1: σ21 ≠ σ22
C. H0: σ21 ≥ σ22; H1: σ21 < σ22
D. H0: σ21 ≤ σ22; H1: σ21 > σ22
Calculate the FSTAT, test statistic. FSTAT = _____? (Type an integer or a decimal. Round to two decimal places as needed.)
Determine the p-value for this F-test.
p-value = ____? (Type an integer or a decimal. Round to three decimal places as needed.)
Reach a decision.
(Reject, Do not reject) H0. There is (insufficient, sufficient) evidence of a difference in the variance of the yield of five-year CDs in the two cities.
Statistics Unlocking the Power of Data
ISBN: 978-1118583104
1st edition
Authors: Robin H. Lock, Patti Frazer Lock, Kari Lock Morgan, Eric F. Lock, Dennis F. Lock