You are an investment manager of an asset management company and you want to evaluate the performanc ...

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You are an investment manager of an asset management company and you want to evaluate the performance of two hedge funds. For this you record their past performance for the last 10 years. The returns for both of the hedge funds in different years are independent and normally distributed with unknown mean ¯ and variance. The mean return for Hedge Fund 1, averaged over the 10 years, is X = 22.15% and the standard deviation calculated from those 10 measurements is 2.79%. For Hedge Fund 2 the mean ¯ return, averaged over the 10 years, is Y = 20.6% and the standard deviation calculated from those 10 measurements is 2.46%. Test equality of the variances for the two hedge funds using ? = 0.1.