Place the larger variance in the numerator

Assignment Help Business Management
Reference no: EM132199751

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 to test the claim that the variance in the daily stock price changes for stock 1 is different from the variance in the daily stock price changes for 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?

Reference no: EM132199751

Questions Cloud

Find the actuarial present value of the warranty payment : A three-year warranty on a new computer will pay b(k) = 500(4 - k) for failure in the kth year, Find the Actuarial Present Value of the warranty payment
Difference between the treatment groups : The probability of observing a difference between the treatment groups as large or larger than she observed if the new treatment
Surviving the boss from hell : Dysfunction occurs when a factor in the organization creates a failure to achieve goals. Read the case, “Surviving the Boss from Hell,”
Valid interpretations of the confidence interval : The confidence interval is (0.82, 1.13). Which of the following are valid interpretations of the confidence interval?
Place the larger variance in the numerator : 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?
What sort of similarity measure would you use : The following attributes are measured for members of a herd of Asian elephants: weight, height, tusk length, trunk length, and ear area.
Would zaras model work for other retailers : How is Zara going to expand successfully all over the world with the same level of speed and instant fashion?
Probability of a type ii error : When testing H0 : µ = 0 versus HA : µ 6= 0 at a = 0.05 with n = 100, suppose that ß, the probability of a type II error, is equal to 0.04 when µ = 2.
United states is still considered to be common law county : Discuss how the United States is still considered to be a "common law" country.

Reviews

Write a Review

Business Management Questions & Answers

  Caselet on michael porter’s value chain management

The assignment in management is a two part assignment dealing 1.Theory of function of management. 2. Operations and Controlling.

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. An analysis into the launch of Mountain Man Light over the present Mountain Man Lager.

  Analysis of the case using the doing ethics technique

Analysis of the case using the Doing Ethics Technique (DET). Analysis of the ethical issue(s) from the perspective of an ICT professional, using the ACS Code of  Conduct and properly relating clauses from the ACS Code of Conduct to the ethical issue.

  Affiliations and partnerships

Affiliations and partnerships are frequently used to reach a larger local audience? Which options stand to avail for the Hotel manager and what problems do these pose.

  Innovation-friendly regulations

What influence (if any) can organizations exercise to encourage ‘innovation-friendly' regulations?

  Effect of regional and corporate cultural issues

Present your findings as a group powerpoint with an audio file. In addition individually write up your own conclusions as to the effects of regional cultural issues on the corporate organisational culture of this multinational company as it conducts ..

  Structure of business plan

This assignment shows a structure of business plan. The task is to write a business plane about a Diet Shop.

  Identify the purposes of different types of organisations

Identify the purposes of different types of organisations.

  Entrepreneur case study for analysis

Entrepreneur Case Study for Analysis. Analyze Robin Wolaner's suitability to be an entrepreneur

  Forecasting and business analysis

This problem requires you to apply your cross-sectional analysis skills to a real cross-sectional data set with the goal of answering a specific research question.

  Educational instructional leadership

Prepare a major handout on the key principles of instructional leadership

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd