HW11 - STAT 500 HW 11 1. Problem 7.3 a. Boxplots for each...

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STAT 500 HW 11 1. Problem 7.3 a. Boxplots for each sample Data Procedure2 Procedure1 100 90 80 70 60 Boxplot of Procedure1, Procedure2 b. Probability plot Data Percent 130 120 110 100 90 80 70 60 50 40 99 95 90 80 70 60 50 40 30 20 10 5 1 Mean 0.628 70.22 6.241 9 0.278 0.560 StDev N AD P 86.78 12.41 9 0.257 Variable Procedure1 Procedure2 Probability Plot of Procedure1, Procedure2 Normal - 95% CI The probability plot shows that normality is warranted for both samples a. Ho: σ 2 1 = σ 2 2 Ha: σ 2 1 ≠ σ 2 2 Two tailed test 1 = procedure 1 2 = procedure 2 α=0.10
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Test for equal variances 90% Bonferroni confidence intervals for standard deviation Procedure N Lower StDev Upper Procedure 1 9 8.380669 12.4074 23.7698 Procedure 2 9 4.21522 6.2405 11.9555 F-Test (Normal distribution) Test statistic = 3.95, p-value = 0.069 Levene’s Test (any continuous distribution) Test statistic = 4.55, p-value = 0.049 Since the normality assumptions are warranted, we can use the F-test. P-value<α, we reject the null hypothesis. Thus we conclude that there is enough evidence to suggest that the population variances of the two procedures are not equal. 2. Problem 7.32 a. S 1 = 3.5963 1= portfolio 1 S 2 = 5.4047 2= portfolio 2 Portfolio 2 seems to have a higher risk than portfolio 1, because variability is higher. b. Test for equal variances: Return versus Portfolio 90% Bonferroni confidence intervals for standard deviation Procedure N Lower StDev Upper Portfolio 1 10 2.35242 3.59629 7.2417 Portfolio 2 10 3.89800 6.2405 11.9996 F-Test (Normal distribution) Test statistic = 0.36, p-value = 0.148
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HW11 - STAT 500 HW 11 1. Problem 7.3 a. Boxplots for each...

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