When Testing for the Difference Between 2 Population Variances with Sample

question 106

Multiple Choice

When testing for the difference between 2 population variances with sample sizes of n₁ = 8 and n₂ = 10, where n₁ has the larger variance, the number of degrees of freedom are

• A) 8 and 10.
• B) 7 and 9.
• C) 18.
• D) 16.

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Definitions:

Nominal

Referring to a value expressed in current prices, without adjustment for inflation, as opposed to real values which are adjusted for inflation.

Real Wage

The purchasing power of wages, adjusted for inflation, indicating the quantity of goods and services that can be bought.

Consumer Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services, typically used to assess inflation.

Wage Rate

The amount of compensation paid to labor per unit of time, typically expressed as an hourly rate or annual salary.