Tamara Hill, fund manager of the Hill Value Fund, manages a portfolio of 250 common stocks.Tamara is searching for a 'low risk' issue to add to the portfolio, i.e., one with a price variance less than that of the S&P 500 index.Moreover, she assumes an issue is not 'low risk' until demonstrated otherwise.Her staff reported that during the last nine quarters, the price variance for the S&P 500 index (population 1)was 25, and for the last seven quarters, the price variance for XYC common (population 2)was 8.Assume that stock prices are normally distributed in the population.Using$\alpha$ = 0.05, the critical F value is _______.
A)3.68
B)3.58
C)4.15
D)3.29
E)4.89

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The Answer of Tamara Hill, fund manager of the Hill Value Fund, manages a portfolio of 250 common stocks.Tamara is searching for a 'low risk' issue to add to the portfolio, i.e., one with a price variance less than that of the S&P 500 index.Moreover, she assumes an issue is not 'low risk' until demonstrated otherwise.Her staff reported that during the last nine quarters, the price variance for the S&P 500 index (population 1)was 25, and for the last seven quarters, the price variance for XYC common (population 2)was 8.Assume that stock prices are normally distributed in the population.Using$\alpha$ = 0.05, the critical F value is _______.
A)3.68
B)3.58
C)4.15
D)3.29
E)4.89

Tamara Hill, Fund Manager of the Hill Value Fund, Manages α\alphaα

Tamara Hill, Fund Manager of the Hill Value Fund, Manages $\alpha$