It is believed that a stock price for a particular company will grow at a rate of $5 per week. An investor believes the stock won’t grow as quickly. The changes in stock price is recorded for ten weeks and are as follows: $4, $3, $2, $3, $1, $7, $2, $1, $1, $2. Perform a hypothesis test using a 5% level of significance. State the null and alternative hypotheses, find the p-value, state your conclusion, and identify the Type I and Type II errors. Let’s assume the population is normal. a. First, this is a test of a single population mean. b. Null and alternative hypotheses: c. Distribution of the test: d. Graph: e. Test statistic: f. p-value: g. Decision: h. Conclusion: i. Construct 95% Confidence Interval for the mean.
Q2. It is believed that a stock price for a particular company will grow at a rate of $5 per week. An investor
believes the stock won’t grow as quickly. The changes in stock price is recorded for ten weeks and are as
follows: $4, $3, $2, $3, $1, $7, $2, $1, $1, $2. Perform a hypothesis test using a 5% level of significance. State the
null and alternative hypotheses, find the p-value, state your conclusion, and identify the Type I and Type II
errors. Let’s assume the population is normal.
a. First, this is a test of a single population mean.
b. Null and alternative hypotheses:
c. Distribution of the test:
d. Graph:
e. Test statistic:
f. p-value:
g. Decision:
h. Conclusion:
i. Construct 95% Confidence Interval for the mean.
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