Renee-CQUPT 87 Exercise V21 - Millions of investors buy mutual funds choosing from thousands of possibilities. Some funds can be purchased directly from banks or other financial institutions while others must be purchased through brokers. - Researchers randomly sampled the annual returns from mutual funds that can be acquired directly and mutual funds that are bought through brokers and recorded the net annual returns. Is there a difference in the variances between the purchased directly from banks and purchased through brokers at the \( \alpha=0.05 \) level? \begin{tabular}{|l|c|c|} \hline & Direct & Broke \\ \hline Variance & 37.49 & 43.34 \\ \hline Sample size & 31 & 25 \\ \hline \end{tabular} Renee-CQUPT 88
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- Null hypothesis (\(H_0\)): The variances are equal, \(\sigma^2_{\text{Direct}} = \sigma^2_{\text{Broke}}\). - Alternative hypothesis (\(H_a\)): The variances are not equal, \(\sigma^2_{\text{Direct}} \neq \sigma^2_{\text{Broke}}\). Show more…
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