The Sample Standard Deviations and Sample Sizes Are Given for Independent

question 22

Multiple Choice

The sample standard deviations and sample sizes are given for independent simple random samples from twopopulations. Use the two-standard-deviations F-test to conduct the required hypothesis test.
- $\mathrm { s } _ { 1 } = 32.2 , \mathrm { n } _ { 1 } = 61 , \mathrm {~s} _ { 2 } = 26.8 , \mathrm { n } _ { 2 } = 31 \text {; right-tailed test, } \alpha = 0.01$

• A)Test statistic: \(\mathrm { F } = 38.69\). Critical value \(= 2.03\). Reject \(\mathrm { H } _ { 0 }\).
• B) Test statistic: \(\mathrm { F } = 1.44\). Critical value \(= 2.21\). Do not reject \(\mathrm { H } _ { 0 }\).
• C) Test statistic: \(\mathrm { F } = 1.44\). Critical value \(= 2.03\). Reject \(\mathrm { H } _ { 0 }\).
• D) Test statistic: \(\mathrm { F } = 1.2\). Critical value \(= 2.21\). Do not reject \(\mathrm { H } _ { 0 }\).

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Definitions:

ROE

Return on Equity, a financial ratio indicating the profitability of a business in relation to its equity, measuring how effectively investment funds are utilized.

Fixed Costs

Regardless of how much is produced or sold, certain costs like rent, employee salaries, and insurance payments do not vary.

Variable Costs

Expenses that change in proportion to the activity of a business.

Selling Price

The price at which a product or service is sold to the customer.