EconHM4 - Question #1 This question is similar to example...

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Question #1 This question is similar to example #1 on page 37 (slide 11) of the course packet. A group of 12 security analysts provided estimates of the year 2001 earnings per share of Qualcomm, Inc. and they are stored here . You have to test whether the population variance is less than 0.01. 1. The test statistic for testing this claim will have the following distribution: o Z distribution o t distribution with 11 degrees of freedom o Chi-squared with 12 degrees of freedom o Chi-squared with 11 degrees of freedom 2. The value of the test statistic for testing the claim is 9.296666667 . 3. Based on your test-stat and the critical values provided, what is your conclusion? o Reject the null hypothesis and conclude that the variation is different than 0.01. o Do not reject the null hypothesis and conclude that the variation is less than 0.01. o Reject the null hypothesis and conclude that the variation is equal to 0.01. o Do not reject the null hypothesis and conclude that the variation is equal to 0.01. o Do not reject the null hypothesis; there is not enough evidence to conclude that the variation is less than 0.01. 4. Construct a 95% confidence interval for the true variance of earnings per share. The LCL is 0.004241171 . 5. The UCL is 0.024363941 . Question #2 Please refer to the example #2 given on page 37 (slide 12) of the course packet. Plastic sheets produced by a machine are periodically monitored for possible variation
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EconHM4 - Question #1 This question is similar to example...

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