Financial Risk Manager Part 1
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Which statistic should you use to compare 2 population's variances, with a sample size smaller than 30?
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Community
NNikitesh
A
z-test
B
Chi-square test
C
t-test
D
F-test
Explanation:
We always use the F-test to compare two population variances even when the sample size is less than 30. The two important conditions for the test are as follows:
(I) The populations from which the two samples are drawn are normally distributed. (II) The two populations are independent of each other.
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