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The Test Statistic Employed to Test H0:σ12/σ22=1H _ { 0 } : \sigma _ { 1 } ^ { 2 } / \sigma _ { 2 } ^ { 2 } = 1

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The test statistic employed to test H0:σ12/σ22=1H _ { 0 } : \sigma _ { 1 } ^ { 2 } / \sigma _ { 2 } ^ { 2 } = 1 is F=s12/s22F = s _ { 1 } ^ { 2 } / s _ { 2 } ^ { 2 } is F-distributed with v1 = n1 - 1 and v2 = n2 -1 degrees of freedom if the two populations are F-distributed.


Definitions:

Parameters

Statistical or mathematical conditions and variables that define the scope and functioning of a model, equation, or procedure.

Level of Significance

A threshold in hypothesis testing that determines the probability at which the null hypothesis is rejected.

Type I Error

The incorrect rejection of a true null hypothesis, also known as a "false positive," indicating a test's incorrect indication of a significant effect.

Available-For-Sale Securities

Financial assets that are neither classified as held for trading nor held to maturity, and are recorded at fair value with unrealized gains or losses reported in other comprehensive income.

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