Fitness Program
A statistician wants to test for the equality of means in two independent samples drawn from normal
populations of people enrolled in a fitness program. However, he will not perform the equal-variance
t-test of the difference between the population means if the condition necessary for its use is not
satisfied. The number of pound lost at the completion of the program data follow:
74. {Fitness Program Narrative} Can the statistician conclude at the 5% significance level that the
required condition is not satisfied?
75. {Fitness Program Narrative} Estimate with 95% confidence the ratio of the two population variances
and interpret.
Profit Margin
An investor is considering two types of investment. She is quite satisfied that the expected profit
margin on Investment 1 is higher than the expected profit margin on Investment 2. However, she is
quite concerned that the risk associated with Investment 1 is higher than that of Investment 2. To help
make her decision, she randomly selects seven monthly profit margins on investment 1 and ten
monthly profit margins on investment 2. She finds that the sample variances of Investments 1 and 2
are 225 and 118, respectively.
76. {Profit Margin Narrative} Can she infer at the 5% significance level that the population variance of
investment 1 exceeds that of investment 2?