Conduct a two tailed test of equality of mean stock return

Assignment Help Basic Statistics

Reference no: EM131381069

Test the validity of the equal-variance assumption for the data presented in given problem.

Problem :-

An article reports the results of an analysis of stock market returns before and after antitrust trials that resulted in the breakup of AT&T. The study concentrated on two periods:

the pre-antitrust period of 1966 to 1973, denoted period 1, and the antitrust trial period of 1974 to 1981, called period 2. An equation similar to equation 8-7 was used to test for the existence of a difference in mean stock return during the two periods.

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 following data: n₁ = 21, x‾ = 0.105, s₁ = 0.09; n₂ = 28, x‾ = 0.1331, s₂ = 0.122. Use α = 0.05.

Reference no: EM131381069

Questions Cloud

Analyze how funding in the form of aid and investment : Assess the positive and negative effects that peace and war, respectively, have on the distribution of foreign aid in the developing country that you have selected. Support your response with concrete examples of each of the results that you have ..

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?

Explain five elements of critical thinking that you found : GEN499- Explain at least five elements of critical thinking that you found in the reading material. Summarize the content and explain why you think it demonstrates good critical thinking skills.

How will government regulation impact decision making : In your paper, answer the following questions: How will government regulation impact decision making? Will the community's makeup be a consideration for decision makers

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 following data:

What three points will you emphasize the most and why : Earl Whitecloud is an American high-school student. He is constantly teased and bullied by his classmates because he occasionally wears clothing that represents his Native-American heritage. As a result, Earl spends most of his time at school alon..

Summarize the history and purpose of osha : In the workplace, employers should create a safe and healthy environment. The Occupational Safety and Health Administration (OSHA) was created to ensure this environment. Summarize the history and purpose of OSHA

Comment on schoenthalers study on diet and crime : How can we explain the fact that millions of kids watch violent TV shows and remain nonviolent? If there is a TV-violence link, how can we explain the fact that violence rates may have been higher in the "Old West" than they are today? Do you thin..

Compare the sales volumes and the consistency of sales : Your supervisor has asked you to prepare a brief report comparing the sales volumes and the consistency of sales of these four salespersons. Use the mean sales for each salesperson to compare the sales volumes.

User Account

All Pages