7-12 econ203 2 - Question #1 This question is similar to...

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Question #1 This question is similar to example #1 on slide 11, page 49 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 11 degrees of freedom o Chi-squared with 12 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 0.004241 . 5. The UCL is 0.024364 . Item 4: Your answer is within ±0.1% of the solution - correct. Item 5: Your answer is within ±0.1% of the solution - correct. You received a raw score of 100% on this question. Question #2
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This note was uploaded on 07/23/2010 for the course ECON 203 taught by Professor Petry during the Spring '08 term at University of Illinois at Urbana–Champaign.

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7-12 econ203 2 - Question #1 This question is similar to...

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