Test Hypotheses Regarding Two Population Standard Deviations
-Test the Hypothesis $\sigma _ { 1 } > \sigma _ { 2 }$

question 91

Multiple Choice

Test Hypotheses Regarding Two Population Standard Deviations
-Test the hypothesis that $\sigma _ { 1 } > \sigma _ { 2 }$ at the $\alpha = 0.01$ level of significance for the given sample data.
$\begin{array}{c|cc} & \text { Population 1 } & \text { Population 2 } \\\hline \mathrm{n} & 25 & 17 \\\mathrm{~s} & 5.76 & 2.21\end{array}$

• A) Test statistic: \(\mathrm { F } = 6.79\). Critical value: \(\mathrm { F } = 3.18\). Reject \(\mathrm { H } _ { 0 }\).
• B) Test statistic: \(\mathrm { F } = 6.79\). Critical value: \(\mathrm { F } = 3.18\). Do not reject \(\mathrm { H } _ { 0 }\).
• C) Test statistic: \(\mathrm { F } = 2.61\). Critical value \(= 1.87\). Reject \(\mathrm { H } _ { 0 }\).
• D) Test statistic: \(\mathrm { F } = 2.61\). Critical value \(= 3.18\). Do not reject \(\mathrm { H } _ { 0 }\).

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Definitions:

Consolidating Entries

Journal entries made in the process of combining the financial statements of multiple subsidiaries with those of a parent company.

Original Cost

The acquisition cost of an asset before adjusting for depreciation, amortization, or impairment costs.

Book Value

The net value of a company's assets minus its liabilities, essentially the company's total equity.