Calculate the Test Statistic F to Test the Claim That $$\sigma _ { 1 } ^ { 2 } > \sigma { } _ { 2 } ^ { 2 } .$$

question 8

Multiple Choice

Calculate the test statistic F to test the claim that $$\sigma _ { 1 } ^ { 2 } > \sigma { } _ { 2 } ^ { 2 } .$$ Two samples are randomly selected from populations that are normal. The sample statistics are given below. $$\begin{array} { l l } \mathrm { n } _ { 1 } = 16 & \mathrm { n } _ { 2 } = 13 \\\\\mathrm {~s} _ { 1 } ^ { 2 } = 4800 & \mathrm {~s} _ { 2 } ^ { 2 } = 1875\end{array}$$

• A)2.560
• B)1.600
• C)0.391
• D)6.554

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Definitions:

Base Year

A specific year against which economic or financial data is compared over time for the purpose of analysis.

Financial Data

Quantitative information related to a company's financial performance, including income, expenses, assets, liabilities, and equity.

Return On Total Assets

A financial ratio indicating the profitability of a company relative to its total assets, showing how effectively a company is using its assets to generate profits.

After-Tax Effect

The impact of transactions on a company's net income after accounting for taxes, reflecting the true financial outcome.