Test Hypotheses Regarding Two Population Standard Deviations
- Test the Hypothesis That

question 116

Multiple Choice

Test Hypotheses Regarding Two Population Standard Deviations
- $$\mathrm { s } _ { 1 } = 20.8 , \mathrm { n } _ { 1 } = 16 , \mathrm {~s} _ { 2 } = 23 , \mathrm { n } _ { 2 } = 13 \text {; left-tailed test, } \alpha = 0.10$$
Test the hypothesis that $\sigma _ { 1 } < \sigma _ { 2 }$ at the $\alpha = 0.10$ level of significance for the given sample data.
$\begin{array}{l|cc} & \text { Population 1 } & \text { Population 2 } \\\hline \mathrm{n} & 16 & 13 \\\mathrm{~s} & 20.8 & 23\end{array}$

• A) Test statistic: \(\mathrm { F } = 0.82\). Critical value \(= 0.495\). Do not reject \(\mathrm { H } _ { 0 }\).
• B) Test statistic: \(\mathrm { F } = 0.82\). Critical value \(= 0.476\). Do not reject \(\mathrm { H } _ { 0 }\).
• C) Test statistic: \(\mathrm { F } = 0.82\). Critical value \(= 0.495\). Reject \(\mathrm { H } _ { 0 }\).
• D) Test statistic: \(\mathrm { F } = 0.82\). Critical value \(= 0.476\). Reject \(\mathrm { H } _ { 0 }\).

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Definitions:

Loss on Sale

The financial loss incurred when the selling price of an asset is less than its carrying amount.

Operating Activities

These activities relate directly to the business's primary operations, such as selling goods or services, as opposed to investing or financing activities.

Cash Flows

The cumulative sum of funds moving in and out of a company, particularly impacting its ability to cover short-term obligations.

Indirect Method

A method of reporting cash flows from operating activities in the cash flow statement by starting with net income and adjusting for non-cash transactions.