QUESTIONS 19 THROUGH 32 RELATE TO QUANTITATIVE METHODS

25. - MOCK AND SAMPLE EXAMS CFA CFA LEVEL I MOCK EXAM AFTERNOON 2013 25. - MOCK AND SAMPLE EXAMS CFA CFA LEVEL I MOCK EXAM AFTERNOON 2013
MOCK AND SAMPLE EXAMS CFA CFA LEVEL I MOCK EXAM AFTERNOON 2013
25. Population 1 2 Sample size n

1

= 5 n

2

= 5 Sample variance = 4 = 28 The samples are drawn independently, and both populations are assumed to be normally distributedUsing the above data, an analyst is trying to test the null hypothesis that the population variances are equal (H

0

: ) against the alternative hypothesis that the variances are not equal (H

A

: ) at the 5% level of significance. The table of the F-Distribution is provided below. Table of the F-Distribution Panel A: Critical values for right-hand tail areas equal to 0.05 1 2 3 4 5 df1 (read across) df2 1 161 200 216 225 230 (read down) 2 18.5 19.0 19.2 19.2 19.3 3 10.1 9.55 9.28 9.12 9.01 4 7.71 6.94 9.59 6.39 6.26 5 6.61 5.79 5.41 5.19 5.05 Panel B: Critical values for right-hand tail areas equal to 0.025 df1 (read across) 1 648 799 864 900 922 2 38.51 39.00 39.17 39.25 39.30 3 17.44 16.04 15.44 15.10 14.88 4 12.22 10.65 9.98 9.60 9.36 5 10.01 8.43 7.76 7.39 7.15 Which of the following statements is most appropriate? The critical value is: A. 6.39 and reject the null. B. 7.15 and do not reject the null. C. 9.60 and do not reject the null.