FRM Part I · FRM Exam Part I · Hypothesis Testing
Which statement about the F-test for equality of two population variances is correct?
The F-test for equal variances uses the ratio of two sample variances, with degrees of freedom from each sample, and assumes independent normal populations. It is quite sensitive to violations of normality, unlike tests on means.
- AThe statistic is the ratio of two sample variances, and it is sensitive to departures from normalityCorrect
- BThe statistic is the difference of two sample variances and is robust to non-normality
- CThe statistic is a ratio of sample means and uses n-1 degrees of freedom
- DThe statistic is symmetric around zero and follows a standard normal distribution
Explanation
The F-test uses s1^2/s2^2 with numerator and denominator degrees of freedom, and it assumes independent normal samples. It is notably sensitive to non-normality. It is not symmetric and not normal.
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