Actuarial Notes

CAS Exam MAS-I Spring 2019, Question 23

Study guide: Exam MAS-I

Two independent random samples of sizes 10 and 12 are taken from two separate normal distributions with unknown variances \sigma_1^2 and \sigma_2^2, respectively.

  • S_1^2 and S_2^2 are the unbiased sample variances
  • S_1^2 = 4
  • You want to perform the following hypothesis test:
    • H_0\colon 2\sigma_1^2 = \sigma_2^2
    • H_1\colon 2\sigma_1^2 < \sigma_2^2
  • The p-value of this test is 1.0%

Calculate S_2^2.

  • A) Less than 10
  • B) At least 10, but less than 20
  • C) At least 20, but less than 30
  • D) At least 30, but less than 40
  • E) At least 40

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Concepts tested

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