Profit Margin An Investor Is Considering Two Types of Investment.She Is Quite

question 124

Essay

Profit Margin
An investor is considering two types of investment.She is quite satisfied that the expected profit margin on Investment 1 is higher than the expected profit margin on Investment 2.However,she is quite concerned that the risk associated with Investment 1 is higher than that of Investment 2.To help make her decision,she randomly selects seven monthly profit margins on investment 1 and ten monthly profit margins on investment 2.She finds that the sample variances of Investments 1 and 2 are 225 and 118,respectively. ​ ​
-{Profit Margin Narrative} Can she infer at the 5% significance level that the population variance of investment 1 exceeds that of investment 2?

---

Definitions:

Body Fat Percentages

A measure of the proportion of a person's mass that is made up of fat, used as an indicator of fitness and health.

Bimodal

Describes a distribution with two distinct peaks or modes, indicating two prevalent groups or outcomes in the data set.

Unimodal

A distribution with a single peak or mode.

Skewed

Describes a distribution that is not symmetrical, with data points clustering more on one side of the mean than the other.