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How profitable are different sectors of the stock market? One way to answer such a question is to examine profit as a percentage of stockholder equity. A random sample of 26 retail stocks such as Toys 'R Us, Best Buy, and Gap was studied for x1, profit as a percentage of stockholder equity. The result was x1 = 13.6. A random sample of 33 utility (gas and electric) stocks such as Boston Edison, Wisconsin Energy, and Texas Utilities was studied for x2, profit as a percentage of stockholder equíty. The result was x2 = 10.1. Assume that oz = 4.2 and az = 3.3. (a) Categorize the problem below according to parameter being estimated, proportion p, mean u, difference of means 41 H2, or difference of proportions p - P2. Then solve the problem. O u1 - 42 O P1 - P2 (b) Let 1 represent the population mean profit as a percentage of stockholder equity for retail stocks, and let uz répresent the population mean profit as a percentage of stockholder equity for utility stocks. Find a 90% confidence interval for - H2. (Use 1 decimal place.) lower limit upper limit (c) Examine the confidence interval and explain what it means in the context of this problem. Does the interval consist of numbers that are all positive? all negative? of different signs? At the 90% level of confidence, does it appear that the profit as a percentage of stockholder equity for retail stocks is higher than that for utility stocks? O Because the interval contains only positive numbers, we can say that the profit as a percentage of stockholder equity is higher for retail stocks. O Because the interval contains both positive and negative numbers, we can not say that the profit as a percentage of stockholder equity is higher for retail stocks. O We can not make any conclusions using this confidence interval. O Because the interval contains only negative numbers, we can say that the profit as a percentage of stockholder equity is higher for utility stocks.

How profitable are different sectors of the stock market? One way to answer such a question is to examine profit as a percentage of stockholder equity. A random sample of 26 retail stocks such as Toys 'R Us, Best Buy, and Gap was studied for x1, profit as a percentage of stockholder equity. The result was x1 = 13.6. A random sample of 33 utility (gas and electric) stocks such as Boston Edison, Wisconsin Energy, and Texas Utilities was studied for x2, profit as a percentage of stockholder equíty. The result was x2 = 10.1. Assume that oz = 4.2 and az = 3.3. (a) Categorize the problem below according to parameter being estimated, proportion p, mean u, difference of means 41 H2, or difference of proportions p - P2. Then solve the problem. O u1 - 42 O P1 - P2 (b) Let 1 represent the population mean profit as a percentage of stockholder equity for retail stocks, and let uz répresent the population mean profit as a percentage of stockholder equity for utility stocks. Find a 90% confidence interval for - H2. (Use 1 decimal place.) lower limit upper limit (c) Examine the confidence interval and explain what it means in the context of this problem. Does the interval consist of numbers that are all positive? all negative? of different signs? At the 90% level of confidence, does it appear that the profit as a percentage of stockholder equity for retail stocks is higher than that for utility stocks? O Because the interval contains only positive numbers, we can say that the profit as a percentage of stockholder equity is higher for retail stocks. O Because the interval contains both positive and negative numbers, we can not say that the profit as a percentage of stockholder equity is higher for retail stocks. O We can not make any conclusions using this confidence interval. O Because the interval contains only negative numbers, we can say that the profit as a percentage of stockholder equity is higher for utility stocks.

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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### How Profitable are Different Sectors of the Stock Market? One way to answer such a question is to examine profit as a percentage of stockholder equity. For this analysis: - A random sample of 26 retail stocks such as Toys 'R' Us, Best Buy, and Gap was studied for \( x_1 \), profit as a percentage of stockholder equity. The result was \( x_1 = 13.6 \). - A random sample of 33 utility stocks (gas and electric) such as Boston Edison, Wisconsin Energy, and Texas Utilities was studied for \( x_2 \), profit as a percentage of stockholder equity. The result was \( x_2 = 10.1 \). - Assume that \( \sigma_1 = 4.2 \) and \( \sigma_2 = 3.3 \). #### (a) Categorize the problem below according to parameter being estimated: - Proportion \( p \), - Mean \( \mu \), - Difference of means \( \mu_1 - \mu_2 \), - or Difference of proportions \( p_1 - p_2 \). Then solve the problem. Options: - \( \mu_1 - \mu_2 \) - \( \mu \) - \( p \) - \( p_1 - p_2 \) #### (b) Let \( \mu_1 \) represent the population mean profit as a percentage of stockholder equity for retail stocks, and let \( \mu_2 \) represent the population mean profit as a percentage of stockholder equity for utility stocks. Find a 90% confidence interval for \( \mu_1 - \mu_2 \) (Use 1 decimal place.) - **Lower limit:** - **Upper limit:** #### (c) Examine the confidence interval and explain what it means in the context of this problem. Does the interval consist of numbers that are all positive? All negative? Of different signs? At the 90% level of confidence, does it appear that the profit as a percentage of stockholder equity for retail stocks is higher than that for utility stocks? Options: 1. Because the interval contains only positive numbers, we can say that the profit as a percentage of stockholder equity is higher for retail stocks. 2. Because the interval contains both positive and negative numbers, we cannot make any conclusive statements. 3. Because the interval contains only
Transcribed Image Text:### How Profitable are Different Sectors of the Stock Market? One way to answer such a question is to examine profit as a percentage of stockholder equity. For this analysis: - A random sample of 26 retail stocks such as Toys 'R' Us, Best Buy, and Gap was studied for \( x_1 \), profit as a percentage of stockholder equity. The result was \( x_1 = 13.6 \). - A random sample of 33 utility stocks (gas and electric) such as Boston Edison, Wisconsin Energy, and Texas Utilities was studied for \( x_2 \), profit as a percentage of stockholder equity. The result was \( x_2 = 10.1 \). - Assume that \( \sigma_1 = 4.2 \) and \( \sigma_2 = 3.3 \). #### (a) Categorize the problem below according to parameter being estimated: - Proportion \( p \), - Mean \( \mu \), - Difference of means \( \mu_1 - \mu_2 \), - or Difference of proportions \( p_1 - p_2 \). Then solve the problem. Options: - \( \mu_1 - \mu_2 \) - \( \mu \) - \( p \) - \( p_1 - p_2 \) #### (b) Let \( \mu_1 \) represent the population mean profit as a percentage of stockholder equity for retail stocks, and let \( \mu_2 \) represent the population mean profit as a percentage of stockholder equity for utility stocks. Find a 90% confidence interval for \( \mu_1 - \mu_2 \) (Use 1 decimal place.) - **Lower limit:** - **Upper limit:** #### (c) Examine the confidence interval and explain what it means in the context of this problem. Does the interval consist of numbers that are all positive? All negative? Of different signs? At the 90% level of confidence, does it appear that the profit as a percentage of stockholder equity for retail stocks is higher than that for utility stocks? Options: 1. Because the interval contains only positive numbers, we can say that the profit as a percentage of stockholder equity is higher for retail stocks. 2. Because the interval contains both positive and negative numbers, we cannot make any conclusive statements. 3. Because the interval contains only
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