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A stockbroker at Critical Securities reported that the mean rate of return on a sample of 11 oil stocks was 2.78% with a standard deviation of 5.5%. The mean rate of return on a sample of 9 utility stocks was 14.2% with a standard deviation of 3.3%. At the 0.01 significance level, can we conclude that there is more variation in the oil stocks?
H0: σ21 - σ22 ≤ 0
H1: σ21 - σ22 > 0
a. State the decision rule. (Round the final answer to 2 decimal places.)
Reject H0 when F > .
b. Compute the value of the test statistic. (Round the final answer to 2 decimal places.)
Value of the test statistic
c. What is your decision regarding H0?
determine the area under the standard normal curve in parts a through c below. find the area under the normal curve to
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