Null and alternative hypothesis for management question

Reference no: EM13990429

A financial analyst asked the following question: 'Is the average earnings yield of manufacturing companies the same as the average earnings yield of retailing companies?' To examine this question, the analyst randomly sampled 19 manufacturing companies and 24 retailing companies. The descriptive statistics from each sample of companies are as follows:

	Manufacturers	Retailers
Sample mean (%)	8.45	10.22
Sample standard deviation	3.32	4.14
Sample size	19	24

(a) Formulate the null and alternative hypothesis for this management question (i.e. can the financial analyst conclude that there is no difference in the average earnings yield between companies in the manufacturing and retailing sectors?)

(b) Conduct a hypothesis test for the difference between two means to test the null hypothesis at the 5% level of significance. What conclusion can be drawn?

Reference no: EM13990429

Questions Cloud

Absorbs a significant portion of the health care dollar : The insurance industry plays a major role in the American health care system and absorbs a significant portion of the health care dollar. A single payer system, whether it is a private company or the U. S. government, would eliminate the complex insu..

Calculate gross patient revenue and deductions from gross : Determine the amount of net operating income that would result for a hospital whose payer mix and expected volume (100 cases) is as follows: Average cost per case is expected to be $2,200, and the average charge per case is $2,500. Calculate Gross pa..

Structural classification of protein : Write a detailed essay on a few biological databases (primary or secondary) involved in genome studies.

Manufactures two lightweight motorcycles designed : Embassy Motorcycles (EM) manufactures two lightweight motorcycles designed for easy handling and safety. The EZ-Rider model has a new engine and a low profile that make it easy to balance. The Lady-Sport model is slightly larger, uses a more traditio..

Null and alternative hypothesis for management question : Formulate the null and alternative hypothesis for this management question (i.e. can the financial analyst conclude that there is no difference in the average earnings yield between companies in the manufacturing and retailing sectors?)

Summarize the position of the ibew in the case : From the position of the IBEW Representative, detail the following information in a 2-4 page, APA formatted paper. Include support for your positions based on the facts provided. Summarize the position of the IBEW in the case

Ownership has greatest ability to attract capital : Partners cannot take an active role in the operation of a business, but if the business fails, they stand to lose only what they have invested in the company. A valid copyright last for: The disclosure document that is designed to help prospective fr..

Matched-pairs t-test to conduct a hypothesis test : 1. When is it appropriate to use a matched-pairs t-test to conduct a hypothesis test?

Hypothesis test for the difference between two means : 1. When is the t-test statistic used in a hypothesis test for the difference between two means?

User Account

All Pages