# Hypothesis Testing of Variance

Not what you're looking for?

A finance professor claims that there is much more variability in the final exam scores of students taking the introductory finance course as a requirement than for students taking the course as part of a major in finance. Random samples of 16 non-finance majors (group 1) and 10 finance majors (group 2) are taken from the professors class roster in his large lecture. The standard deviation of group 1 is 14.4361 while the standard deviation of group 2 is 6.28491.

a. Formulate a hypothesis to test whether or not there is evidence to support the professors claim.

b. At the 0.05 level of significance, using the critical value approach, is there evidence to support the professors claim? What is your conclusion?

c.Using a 0.05 level of significance and the p-value approach, what is the p-value? And what is your conclusion?

d.What assumption do you need to make in (b) about the two populations in order to justify your use of the test?

I need the calculations shown on this as well. Thanks!

##### Purchase this Solution

##### Solution Summary

The solution provides step by step method for the calculation of testing of hypothesis. Formula for the calculation and Interpretations of the results are also included. Interactive excel sheet is included. The user can edit the inputs and obtain the complete results for a new set of data.

##### Solution Preview

Please see the attachments.

If you have any doubt, please don't hesitate to contact me.

Hypothesis Testing

A finance professor claims that there is much more variability in the final exam scores of students taking the introductory finance course as a requirement than for students taking the course as part of a major in finance. Random samples of 16 non-finance majors (group 1) and 10 finance majors (group 2) are taken from the professor's class roster in his large lecture. The standard deviation of group 1 is 14.4361 while the standard deviation of group 2 is 6.28491.

Answers

a. Formulate a hypothesis to test whether or not there is evidence to support the professor's claim.

The null hypothesis tested is

H0: The variability in the final exam scores of non-finance majors is not significantly higher than that of finance majors. ( )

The ...

##### Purchase this Solution

##### Free BrainMass Quizzes

##### Terms and Definitions for Statistics

This quiz covers basic terms and definitions of statistics.

##### Measures of Central Tendency

This quiz evaluates the students understanding of the measures of central tendency seen in statistics. This quiz is specifically designed to incorporate the measures of central tendency as they relate to psychological research.

##### Know Your Statistical Concepts

Each question is a choice-summary multiple choice question that presents you with a statistical concept and then 4 numbered statements. You must decide which (if any) of the numbered statements is/are true as they relate to the statistical concept.

##### Measures of Central Tendency

Tests knowledge of the three main measures of central tendency, including some simple calculation questions.