You are a financial analyst for a brokerage firm. You want to compare dividend yields between stocks listed on the NYSE \& NASDAQ. You collect the following data:
\begin{tabular}{lrr}
& NYSE & NASDAQ \\
\cline { 2 - 3 } Number & 21 \\
Mean & 3.27 & 2.53 \\
Std dev & 1.30 & 1.16 \\
Is there a difference in the \\
variances between the NYSE \\
NASDAQ at the $\alpha=0.10$ level?
\end{tabular}

Answer

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Answer

\boxed{\text{There is no significant difference in the variances between the NYSE and NASDAQ at the }\alpha=0.10\text{ level}}

Steps

Step 1 ：Calculate the F-test statistic: F = $\frac{1.3^2}{1.16^2}$

Step 2 ：Determine the degrees of freedom for both samples: df1 = 21 - 1 and df2 = 21 - 1

Step 3 ：Find the critical value from the F-distribution table using α=0.10 and the degrees of freedom: critical_value = 2.124

Step 4 ：Compare the F-test statistic to the critical value: F < critical_value

Step 5 ：\boxed{\text{There is no significant difference in the variances between the NYSE and NASDAQ at the }\alpha=0.10\text{ level}}