When Testing H₀: σ₁²= σ₁²,H_A: σ₁²> σ₂² at α =

question 87

Short Answer

When testing H₀: σ₁²= σ₁²,H_A: σ₁²> σ₂² at α = .01,where n₁ = 5,n₂ = 6,s₁² = 15,750,and s₂² = 10,920,what critical value do we use?

---

Definitions:

Counterparty Credit Risk

The risk that the other party in a financial transaction might default on their contractual obligations.

Bull Money Spread

An options strategy used by investors to profit from the moderate rise in the price of a stock.

Puts

Options contracts giving the holder the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified time.

Call Contract

A financial contract that gives the holder the right, but not the obligation, to buy a specified amount of an underlying asset at a predetermined price within a specified time period.