What assumptions are you making in given problem

Assignment Help Basic Statistics

Reference no: EM131381000

In given problem, construct a 95% confidence interval for the difference between the average return to investors following a no recommendation and the average return to investors following a yes recommendation. Interpret your results.

Problem
Mark Pollard, financial consultant for Merrill Lynch, Pierce, Fenner & Smith, Inc., is quoted in national advertisements for Merrill Lynch as saying: "I've made more money for clients by saying no than by saying yes." Suppose that Pollard allowed you access to his files so that you could conduct a statistical test of the correctness of his statement. Suppose further that you gathered a random sample of 25 clients to whom Pollard said yes when presented with their investment proposals, and you found that the clients' average gain on investments was 12% and the standard deviation was 2.5%.

Suppose you gathered another sample of 25 clients to whom Pollard said no when asked about possible investments; the clients were then offered other investments, which they consequently made.

For this sample, you found that the average return was 13.5% and the standard deviation was 1%. Test Pollard's claim at α = 0.05. What assumptions are you making in this problem?

Reference no: EM131381000

Questions Cloud

What assumptions are you making in given problem : For this sample, you found that the average return was 13.5% and the standard deviation was 1%. Test Pollard's claim at α = 0.05. What assumptions are you making in this problem?

Conduct a two tailed test of equality of mean stock return : Conduct a two-tailed test of equality of mean stock return in the population of all stocks before and during the antitrust trials using the given data.

Firm hired by avon is more effective than the old one : The cosmetics giant Avon Products recently hired a new advertising firm to promote its products.- Is there evidence that the new advertising firm hired by Avon is more effective than the old one? Explain.

Create and format charts that display your overall grade : Select cell range A5:A8 and G5:G8, using the control feature to select G5:G8, and then click the Insert tab select the Column tab, choose the 3-D Column.Select a style from the Design tab and then format the all courses (on the chart) with the fil..

Explain the rationale and application of space evaluation : Explain the rationale and application of SPACE evaluation in health care planning. How would you utilize SPACE in planning for your own health care facility or program

How leaders sustain the culture in that organization : BUS 322- Explain and give two examples of how leaders sustain the culture in that organization, positive or negative. Note: When incorporating information from the workplace.

Provide a brief description of the status of the company : Provide a brief description of the status of the company that led to its determination that a change was necessary.Identify the model for change theory typified in the case study of your choice. Discuss what led you to identify the model that you d..

Difference between intervention and systems research : What is the difference between intervention research and systems research? Provide an example of a public health advancement or accomplishment that represents each type of research

User Account

All Pages