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Should janice reject or fail to reject the null hypothesis

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Reference no: EM133002521

Janice wants to buy stock A whose return shows a mean of 2% and a standard deviation of 4% based on 250 daily returns. At the .05 level of significance (or 95% confidence level), she would like to test if the stock's daily return is equal to 5%.

Problem (a) write out the null and alternative hypotheses.

Problem (b) Compute the test statistic.

Problem (c) Should she reject or fail to reject the null hypothesis?

Reference no: EM133002521

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