State the null and alternative hypothesis

Assignment Help Business Economics
Reference no: EM132518502

A stock analyst wondered whether the mean rate of return of financial, energy and utility stocks differed over the past 5 years. He obtained a simple random sample of eight companies from each of the three sectors and obtained the 5-year rates of return shown in the following table (in percents):

Financial 10.76 15.05 17.01 5.07 19.5 8.16 10.38 6.75

Energy 12.72 13.91 6.43 11.19 18.79 20.73 9.60 17.4

Utilities 11.88 5.86 13.46 9.90 3.95 3.44 7.11 15.7

Source: Morningstar.com

Required:

(a) State the null and alternative hypothesis.

(b) Are the mean rates of return different at the alpha = 0.05 level of significance? Please explain your answer, citing numeric and other evidence in support of your response.

Reference no: EM132518502

Questions Cloud

Claim that the probabilities of winning : Test the claim that the probabilities of winning are the same in the different positions. Use a 5% significance level. The results are based on 240 wins.
Is accumulated depreciation measures the actual decrease : Accumulated depreciation measures the actual decrease in the market value of the asset. Therefore it is subtracted from the cost true or false
What is social contract theory : What is social contract theory? What are natural rights? What role did they play in early American political history (i.e., Declaration of Independence)?
ITECH2001 - Game Development Fundamentals Assignment : ITECH2001 - Game Development Fundamentals Assignment Help and Solution - Federation University, Australia - Assessment Writing Service - Game Prototype
State the null and alternative hypothesis : Are the mean rates of return different at the alpha = 0.05 level of significance? Please explain your answer, citing numeric and other evidence in support
What the depreciation expense at the end of the second year : If the company uses the double-declining balance method, What the depreciation expense at the end of the second year will be
Popular sovereignty assumes : Popular sovereignty assumes that public policies will reflect the preferences of the people and that folks will have access to credible political information.
Find the journal entry to record the acquisition includes : While the appraised value of the building is 5,600,000 in the date of acquiring. The journal entry to record the acquisition includes
What is the amount of depreciation expense to be recorded : What is the amount of depreciation expense to be recorded by Firm A for the first year of the lease if Firm A uses the straight line depreciation method?

Reviews

Write a Review

Business Economics Questions & Answers

  Deadweight loss in a figure and calculate the actual amount

How much deadweight loss is created as the result of moral hazard from this insurance policy? Show the deadweight loss in a figure and calculate

  Circulating paper dollar bills instead of dollar coins

Explain who ultimately bears the higher cost entailed in circulating paper dollar bills instead of dollar coins?

  Find the average products of capital-labor and materials

Suppose you are given the following Total Product Function: ,where Q=100K ^ 3/2 L ^ 4/2 M ^ 4/7 is total output or units produces; K, capital; L, labor; and M, materials.; that is, this is a input factor production function. Find the Average products..

  Describes the application you choose and the class

Describes the application you choose and the class within that application. Identify one or two key distinctions within that class that would prompt

  Wealth and housing possibilities after housing prices fall

If I spent all my money ($450,000) on a new house I could buy a house with 4500 square feet. I settle for a 1500 square foot house. (Each square foot costs the same.) The day after I close the deal a nearby nuclear power plant is condemned and the va..

  Illustrate how the two companies respond to macroeconomic

Based on the collected data analyze the current macroeconomic situation and its impact on walmart and starbucks. Explore in particular illustrate how the two companies' respond to the macroeconomic conditions in terms of their:

  Aggregate supply in the us

Suppose there is a new discovery of gas shale. How would this affect the aggregate supply in the U.S.?

  What percentage of the students have grade point averages

Using the empirical rule, what percentage of the students have grade point averages that are greater than 1.3? Please do not round your answer.

  Real world example of a unfavorable result

A real world example of a unfavorable result in an experiment and what could have been done to avoid the outcome of the experiment?

  What long-run effects would be on real gdp-public saving

Many people believe that Congress will eventually have to reduce Social Security benefits in order to reduce the budget deficit. Although most of the changes would not take place until later, assume for the purpose of this problem that Social Securit..

  Equations to determine equilibrium price

1: Solve the equations to determine equilibrium price. 2: Now determine equilibrium quantity.

  How much has personal income changed the last two years

How much has personal income changed the last two years? Identified any problems the government needs to address, and possible solutions?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd