Texts: Number of partners data
A particular magazine identified the top accounting firms in 42 geographic regions across a certain country. Even though all 42 regions reported growth in the past year, region A and region B reported the highest combined growths, with 24% and 17%, respectively. A characteristic description of the accounting firms in these regions included the number of partners in the firm. The
region A A A A A A A A A A A A A B B B B B B B B B B B B B B B
Number of Partners 150 55 40 46 46 13 36 39 38 27 14 36 19 107 149 17 11 50 12 34 21 26 9 10 7 9 11 16
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a. At the 0.10 level of significance, is there evidence of a difference in the variability in numbers of partners for region A accounting firms and region B accounting firms? Determine the hypotheses, where σ² is the population variance of the numbers of partners for region A accounting firms and σ² is the population variance of the numbers of partners for region B accounting firms. Choose the correct answer below.
A. H₁: σ₁² ≠ σ₂² H₀: σ₁² = σ₂²
B. H₁: σ₁² > σ₂² H₀: σ₁² < σ₂²
C. H₁: σ₁² = σ₂² H₀: σ₁² ≠ σ₂²
D. H₁: σ₁² < σ₂² H₀: σ₁² > σ₂²
Compute the F-stat test statistic. FSTAT (Round to three decimal places as needed.)