A study analyzed the trading skills of investors. The study focused on "round-trip" trades, that is, trades in which the same stock was both bought and sold in the same quarter. Consider a random sample of 202 round-trip trades made by investors. Suppose the sample mean rate of return is 4.41% and the sample standard deviation is 9.74%. If the true mean rate of return of round-trip trades is positive, then the population of investors is considered to have performed successfully. Complete parts a through e below. a. Specify the null and alternative hypotheses for determining whether the population of investors performed successfully. O A. Hg: H=0 O B. H: H=0 H,: u=0 OC. Ho: -0 O D. Hg: H=0 b. Find the rejection region for the test using a= 0.05. O A. z< -1.96 O B. 2>1.645 or z< - 1.645 O C. z>1.96 O D. z< -1.645 O E. z>1.96 or z< - 1.96 O F. z>1.645 c. Interpret the value of a= 0.05 in the words of the problem. O A. Reject the null hypothesis that the true mean rate of return of round-trip trades is zero if the p-value is greater than the level of significance a= 0.05. O B. Reject the null hypothesis that the true mean rate of return of round-trip trades is zero if the p-value is less than the level of significance a= 0.05. OC. Reject the null hypothesis that the true mean rate of return of round-trip trades is zero if the p-value is equal to the level of significance a = 0.05. O D. Do not reject the null hypothesis that the true mean rate of return of round-trip trades is zero if the p-value is less than the level of significance a= 0.05.
A study analyzed the trading skills of investors. The study focused on "round-trip" trades, that is, trades in which the same stock was both bought and sold in the same quarter. Consider a random sample of 202 round-trip trades made by investors. Suppose the sample mean rate of return is 4.41% and the sample standard deviation is 9.74%. If the true mean rate of return of round-trip trades is positive, then the population of investors is considered to have performed successfully. Complete parts a through e below. a. Specify the null and alternative hypotheses for determining whether the population of investors performed successfully. O A. Hg: H=0 O B. H: H=0 H,: u=0 OC. Ho: -0 O D. Hg: H=0 b. Find the rejection region for the test using a= 0.05. O A. z< -1.96 O B. 2>1.645 or z< - 1.645 O C. z>1.96 O D. z< -1.645 O E. z>1.96 or z< - 1.96 O F. z>1.645 c. Interpret the value of a= 0.05 in the words of the problem. O A. Reject the null hypothesis that the true mean rate of return of round-trip trades is zero if the p-value is greater than the level of significance a= 0.05. O B. Reject the null hypothesis that the true mean rate of return of round-trip trades is zero if the p-value is less than the level of significance a= 0.05. OC. Reject the null hypothesis that the true mean rate of return of round-trip trades is zero if the p-value is equal to the level of significance a = 0.05. O D. Do not reject the null hypothesis that the true mean rate of return of round-trip trades is zero if the p-value is less than the level of significance a= 0.05.
MATLAB: An Introduction with Applications
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ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
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Transcribed Image Text:A study analyzed the trading skills of investors. The study focused on "round-trip" trades, that is, trades in which the same stock was both bought and sold in the same quarter. Consider a random sample of 202 round-trip trades made by investors. Suppose
the sample mean rate of return is 4.41% and the sample standard deviation is 9.74%. If the true mean rate of return of round-trip trades is positive, then the population of investors is considered to have performed successfully. Complete parts a through e
below.
a. Specify the null and alternative hypotheses for determining whether the population of investors performed successfully.
Ο Α. H : μ=0
O B. Ho: H#0
H,: u = 0
O D. Hg: H=0
H: u>0
O C. H: H=0
H3: u0
b. Find the rejection region for the test using a = 0.05.
O A. z< - 1.96
B. z>1.645 or z< - 1.645
O C. z>1.96
O D. z< - 1.645
O E. z>1.96 or z< - 1.96
O F. z>1.645
c. Interpret the value of a = 0.05 in the words of the problem.
O A. Reject the null hypothesis that the true mean rate of return of round-trip trades is zero if the p-value is greater than the level of significance a = 0.05.
O B. Reject the null hypothesis that the true mean rate of return of round-trip trades is zero if the p-value is less than the level of significance a= 0.05.
O C. Reject the null hypothesis that the true mean rate of return of round-trip trades is zero if the p-value is equal to the level of significance a = 0.05.
O D. Do not reject the null hypothesis that the true mean rate of return of round-trip trades is zero if the p-value is less than the level of significance a = 0.05.
d. A printout of the analysis is shown below. Locate the test statistic and p-value on the printout.
Test of mu = 0 vs > 0
95% Lower
N
Mean
StDev
SE
Bound
P
Mean
202 4.410 9.740
0.685
3.067 6.44
0.000
test statistic =
p-value = (Type integers or decimals.)
e. Give the appropriate conclusion in the words of the problem.
O A. Do not reject H,. There is insufficient evidence at the a= 0.05 level of significance to conclude that the true mean rate of return of round-trip trades is positive.
O B. Reject H,. There is sufficient evidence at the a= 0.05 level of significance to conclude that the true mean rate of return of round-trip trades is positive.
OC. Do not reject H,. There is sufficient evidence at the a = 0.05 level of significance to conclude that the true mean rate of retum of round-trip trades is positive.
O D. Reject H,. There is insufficient evidence at the a = 0.05 level of significance to conclude that the true mean rate of return of round-trip trades is positive.
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