A financial analyst examines the performance of two mutual funds and claims that the variances of the annual returns for the bond funds differ. To support his claim, he collects data on the annual returns (in percent) for the years 2001 through 2010. The analyst assumes that the annual returns for the two emerging market bond funds are normally distributed. Use the following summary statistics.
Mutual Fund 1 Mutual Fund 2
s21 = 500 s22 = 100
n1 = 10 n2 = 10
For the competing hypotheses H0:σ21/σ22=1, HA:σ21/σ22≠1, which of the following is the correct approximation of the p-value? Multiple Choice
Between 0.05 and 0.10
Between 0.02 and 0.05
Between 0.01 and 0.025
Less than 0.01
Which Correct option?