# Homework 4 - Graded Homework 4 You have submitted this Econ...

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You have submitted this Econ 203 Homework 1 time (including this time). You may submit this Econ 203 Homework a total of 30 times and receive full credit. These questions refer to hypothesis tests of the population variance, which can be found on pages 47 to 50 in your course packet. 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 Chi-squared with 12 degrees of freedom o Z distribution o Chi-squared with 11 degrees of freedom o t distribution with 11 degrees of freedom 2. The value of the test statistic for testing the claim is 9.296607 . 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 2: Your answer is within ±0.01% of the solution - correct. Item 4: Your answer is within ±0.1% of the solution - correct.

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## This note was uploaded on 04/07/2008 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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Homework 4 - Graded Homework 4 You have submitted this Econ...

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