Each day the major stock markets have a group of leading gainers in price (stocks that go up the most). On one day the standard deviation in the percent change for a sample of 10 NASDAQ leading gainers was 15.8. On the same day, the standard deviation in the percent change for a sample of 10 NYSE leading gainers was 7.9 (USA Today, September 14, 2000). Conduct a test for equal population variances to see whether it can be concluded that there is a difference in the volatility of the leading gainers on the two exchanges. Use alpha = 0.10. What is your conclusion?© BrainMass Inc. brainmass.com June 3, 2020, 10:00 pm ad1c9bdddf
This solution shows details of a hypothesis test of the null hypothesis that two population variances are equal vs. the alternative hypothesis that the variances are different. Please see the attached file.