Annual Growth Rates for Individual Firms in the Toy Industry

question 79

Multiple Choice

Annual growth rates for individual firms in the toy industry tend to fluctuate dramatically,depending on consumers' tastes and current fads.Consider the following growth rates (in percent) for two companies in this industry,Hasbro and Mattel. Which of the following is the correct conclusion?

• A) Do not reject H₀.The variance in the growth rates of the two firms is different at the 5% significance level.
• B) Reject H₀.The variance in the growth rates of the two firms is not different at the 5% significance level.
• C) Do not reject H₀.The variance in the growth rates of the two firms is not different at the 5% significance level.
• D) Reject H₀.The variance in the growth rates of the two firms is different at the 5% significance level.