Answered: collusion, this variance was 16.08.…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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Question

It is hypothesized that the total sales of a corporation should vary more in an industry with active price competition than in one with duopoly and tacit collusion. In a study of the merchant ship production industry it was found that in 4 years of active price competition, the variance of company A’s total sales was 114.09. In the following 7 years, during which there was duopoly and tacit collusion, this variance was 16.08. Assume that the data can be regarded as an independent random sample from two normal distributions.

1. Test, at the 5% level, the null hypothesis that the two population variances are equal against the alternative that they are not equal.

Features Features Normal distribution is characterized by two parameters, mean (µ) and standard deviation (σ). When graphed, the mean represents the center of the bell curve and the graph is perfectly symmetric about the center. The mean, median, and mode are all equal for a normal distribution. The standard deviation measures the data's spread from the center. The higher the standard deviation, the more the data is spread out and the flatter the bell curve looks. Variance is another commonly used measure of the spread of the distribution and is equal to the square of the standard deviation.

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