Economics: Productivity A random sample of leading

Chapter , Problem 8

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Economics: Productivity A random sample of leading companies in South Korea gave the following percentage yields based on assets (see reference in 7): 2.5 2.0 4.5 1.8 0.5 3.6 2.4 0.2 1.7 1.8 1.4 5.4 1.1 Use a calculator to verify that s 2 2.247 for these South Korean companies. Another random sample of leading companies in Sweden gave the following percentage yields based on assets: 2.3 3.2 3.6 1.2 3.6 2.8 2.3 3.5 2.8 Use a calculator to verify that s 2 0.624 for these Swedish companies. Test the claim that the population variance of percentage yields on assets for South Korean companies is higher than that for companies in Sweden. Use a 5% level of significance. How could your test conclusion relate to an economists question regarding volatility of corporate productivity of large companies in South Korea compared with those in Sweden?

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