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?

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Definitions:

Risk Free Rate

The estimated yield from an investment without any risk, frequently shown through the yield of government bonds.

Beta

An indicator of the fluctuation, or inherent risk, of a security or an investment portfolio relative to the overall market.

Shares Outstanding

The total number of a company’s shares that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares.

Debt-equity Ratio

The indicator showing the proportionality of equity and debt in the financial backing of a company’s assets.