Question

Nike's total revenues (in millions of $) for the Asian and Latin American regions for the years 2005 through 2009 are as follows. Let the revenues in Asia and Latin America represent population 1 and population 2, respectively 2005 1,897 2007 2,296 2006 Asia Latin America 2,054 905 2008 2,888 1,165 1,285 2009 3,322 696 967 SOURCE: Nike Online Annual Reports. a. Specify the competing hypotheses in order to test whether the variance in revenues is greater in Asia than in Latin America 0H0: 2 / σ 22 s1. HA: σ12 / σ22 > 1 b. Calculate the value of the test statistic. Assume that revenues are normally distributed. (Round your answer to 2 decimal places.) Test statistic

Answer 1

Answer : a) c

H0 : (Signal ^2/ sigma2^2)>= 1 ; Ha = (sigma1^2/sigma2^2)< 1

B) to calculate test statistic, find the variances of both the distributions, for asia as well as for latin america.

Then calculate there ratio as = (S asia)^2/(S latin america)^2

This will be the test statistic.