Answer:
The conclusion is True
Step-by-step explanation:
Solution:
- The standard deviation of company s1 = 0.035
- The standard deviation of company s2 = 0.062
- Null Hypothesis : s1^2 = s2^2
- Alternate hypothesis : s1^2 < s2^2
- Criteria to reject Null: M > M_a ( 12 - 1 , 12 - 1 )
- From Tables, M > 2.82
- M - statistics value M = s2^2 / s1^2
- M = (0.062 / 0.035)^2 = 3.14
- M = 3.14 > 2.82 ... Criteria of rejection is met
- Null Hypothesis must be rejected at level of significance a = 0.05
- p value, 1 - 0.965 = 0.035 < 0.05 ( Significance Level )
- The conclusion is True