Mean, Variance, Standard Deviation and CorrelationWhile making an investment decision, it is important to assess the risk/return profile of any invest...

Lessons

- What is Hypothesis Testing
- Test Statistic, Type I and type II Errors, and Significance Level
- Decision Rule in Hypothesis Testing
- p-Value in Hypothesis Testing
- Selecting the Appropriate Test Statistic
- Hypothesis Testing with t-statistic
- Hypothesis Testing with z-statistic
- Tests Concerning Differences in Means
- Paired Comparision Tests - Mean Differences When Populations are Not Independent
- Hypothesis Tests Concerning Variances
- Chi-square Test – Test for value of a single population variance
- F-test - Test for the Differences Between Two Population Variances
- Non-parametric Tests

# Hypothesis Tests Concerning Variances

Till now the tests we saw were related to population mean. We can also conduct hypothesis tests concerning the variance of the population.

There are two types of tests:

- Tests concerning the value of a single population variance
- Tests concerning the differences between two population variances

The hypothesis will be formed as follows:

Where is the population variance and is the hypothesized value of the variance.

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