Two Accounting Professors Decided to Compare the Variance of Their

question 30

Multiple Choice

Two accounting professors decided to compare the variance of their grading procedures. To accomplish this,they each graded the same 10 exams,with the following results: At the 10% level of significance,what is the decision regarding the null hypothesis?

• A)Reject the null hypothesis and conclude the variances are different.
• B)Fail to reject the null hypothesis and conclude no significant difference in the variances.
• C)Reject the null hypothesis and conclude the variances are the same.
• D)Fail to reject the null hypothesis and conclude the variances are the same.

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Definitions:

Interest Rate

The financial charge for borrowing resources, represented as a percentage of the initial loan amount.

Account

A record that keeps track of financial transactions, investments, or the financial state of an individual, institution, or company.

Utility Function

A mathematical representation used in economics to model satisfaction or preference that a consumer derives from the consumption of goods and services.

Risk Averse

A behavioral tendency to prefer avoiding losses over acquiring equivalent gains.