# Data were collected on the top

Data were collected on the top 1,000 financial advisers. CompanyA had 239 people on the list and another company, Company B, had121 people on the list. A sample of 16 of the advisers from CompanyA and 10 of the advisers from Company B showed that the advisersmanaged many very large accounts with a large variance in the totalamount of funds managed. The standard deviation of the amountmanaged by advisers from Company A was

s1 = \$585 million.

The standard deviation of the amount managed by advisers fromCompany B was

s2 = \$484 million.

Conduct a hypothesis test at

α = 0.10

to determine if there is a significant difference in thepopulation variances for the amounts managed by the two companies.What is your conclusion about the variability in the amount offunds managed by advisers from the two firms?

P value :

With F = 1.46 , df = ( 15,9)

we get p value = 0.2878

Decision :

P value > l.o.s

0.2878 > 0.10

so fail to reject H0

Conclusion ;

At alpha = 0.10 l.o.s there is no significant difference in thepopulation variances for the amounts managed by the twocompanies.

Note : If we round f to three decimals i,.e., f = 1.461 we get pvalue = 0.2874 so round according to your answer

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