Chapter 10 Problem5

# Chapter 10 Problem5 - H 1 1 2 2 2 stdev1 carre> stdev 2...

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QAS129:001 Instructor: Dr. Yudan Zheng 1. A professor in the accounting department of a business school claims that there is much more variability in the final exam scores of students taking the introductory accounting course as a requirement than for students taking the course as part of a major in accounting. Random sample of 13 non-accounting majors (group 1) and 10 accounting major (group 2) are taken from the professor’s class roster in his large lecture and the following results are computed based on the final exam scores: 5 . 36 10 2 . 210 13 2 2 2 2 1 1 = = = = S n S n (1) At the 0.05 level of significance, is there evidence to support the professor’s claim? ANSWER: H 0 : σ 1 2 σ 2 2 stdev 1 carre <= stdev 2 carre where Populations: 1 = nonaccounting majors 2 = accounting majors The variance in final exam scores of nonaccounting majors is less than or equal to the variance in final exam scores of accounting majors.
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Unformatted text preview: H 1 : 1 2 2 2 stdev1 carre > stdev 2 carre The variance in final exam scores of nonaccounting students is greater than the variance in final exam scores of accounting students. Critical value Fu=FINV(0.05, 12,9)=3.07 Decision rule: If F > 3.07, reject H . Test statistic: 2 1 2 2 210.2 36.5 S F S = = = 5.759 F= S1 Carre / S2 carre=5.759 Decision: Since F = 5.759 is greater than the critical bound of F U = 3.07, reject H . There is enough evidence to conclude that the variance in final exam scores of nonaccounting majors is greater than the variance in final exam scores of accounting majors. (2) What assumption do you need to make in testing the professor’s claim? ANSWER: The test assumes that the two populations are both normally distributed....
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