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 31 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 sample mean of 14.7. A random sample of 36 utility (gas and electric) stocks such os Boston Edison, Wisconsin Energy, and Texas Utilities was studied for x2, profit as a 2 Samp percentage of stockholder equity. The result was a sample mean of 9.8. Assume that gi = 3.4 and o2 = 3.8. N, = 31 ,=TH:1,0,=3.4, n2= 36, En=9.8,0 %3D

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int onodqolot o gnnu noiesup
examine profit as a percentage of stockholder equity. A random sample of 31 retail stocks such as
How profitable are different sectors of the stock market? One way to answer such a question is to
Toys 'R' Us, Best Buy, and Gap was studied for x1, profit as a percentage of stockholder equity.
The result was sample mean of 14.7. A random sample of 36 utility (gas and electric) stocks such
133 80 113
.s Boston Edison, Wisconsin Energy, and Texas Utilities was studied for x2, profit as a
nercentage of stockholder equity. The result was a sample mean of 9.8. Assume
that gi = 3.4 and 02 = 3.8. N, = 31 >X,=TH:1,0,=3.4, n2= 36, E,=9.8,0a
C.L:0.95
At the 95% 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? (Show your confidence in interval
notation and show your interpretation)
2 Sampz
%3D
3.1751 < M,- Azs 6.6243
We are 95% level Conzidence that the Profit
Jol letail &toCKs io
eCentage Stockholder equity
a than that
for utility stocks ·
Transcribed Image Text:int onodqolot o gnnu noiesup examine profit as a percentage of stockholder equity. A random sample of 31 retail stocks such as How profitable are different sectors of the stock market? One way to answer such a question is to Toys 'R' Us, Best Buy, and Gap was studied for x1, profit as a percentage of stockholder equity. The result was sample mean of 14.7. A random sample of 36 utility (gas and electric) stocks such 133 80 113 .s Boston Edison, Wisconsin Energy, and Texas Utilities was studied for x2, profit as a nercentage of stockholder equity. The result was a sample mean of 9.8. Assume that gi = 3.4 and 02 = 3.8. N, = 31 >X,=TH:1,0,=3.4, n2= 36, E,=9.8,0a C.L:0.95 At the 95% 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? (Show your confidence in interval notation and show your interpretation) 2 Sampz %3D 3.1751 < M,- Azs 6.6243 We are 95% level Conzidence that the Profit Jol letail &toCKs io eCentage Stockholder equity a than that for utility stocks ·
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