Test the null hypothesis that the mean daily return of your stock is less or equal to the mean daily return of SP500 against the alternative that the mean daily return of your stock is higher than the mean daily return of SP500H0: µ ≤ µSP500 against the alternative Ha : µ > µSP500 at 95% confidence. Paired t testVariable8_KO8_SP500ObsdiffMean251 .0006892251.0000234Ha: mean (diff) < 0Pr(T |t|) = 0.3605t =degrees of freedom =.0020854.0014425.00209710.9162250Ha: mean (diff) > 0Pr(T > t) = 0.1802

Given that H0: µ ≤ µSP500 against the alternative Ha : µ > µSP500 H0: µ - µSP500≤0 Ha : µ -…

Answered: Test the null hypothesis that the mean…

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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Test the null hypothesis that the mean daily return of your stock is less or equal to the mean daily return of SP500 against the alternative that the mean daily return of your stock is higher than the mean daily return of SP500

H₀: µ ≤ µ_SP500 against the alternative H_a : µ > µ_SP500 at 95% confidence.

Paired t test
Variable
8_KO
8_SP500
Obs
diff
Mean
251 .0006892
251
.0000234
Ha: mean (diff) < 0
Pr(T<t) = 0.8198
Std. Err.
251 .0006658
mean (diff) = mean (g_KO- g_SP500)
Ho: mean (diff)
.0007089
.0007205
.0007267
Std. Dev.
.0112317
.0114153
[95% Conf. Interval]
-.000707
-.0013957
.0115138 -.0007655
Ha: mean (diff) != 0
Pr(|T| > |t|) = 0.3605
t =
degrees of freedom =
.0020854
.0014425
.0020971
0.9162
250
Ha: mean (diff) > 0
Pr(T > t) = 0.1802

Definition Definition Measure of central tendency that is the average of a given data set. The mean value is evaluated as the quotient of the sum of all observations by the sample size. The mean, in contrast to a median, is affected by extreme values. Very large or very small values can distract the mean from the center of the data. Arithmetic mean: The most common type of mean is the arithmetic mean. It is evaluated using the formula: μ = 1 N ∑ i = 1 N x i Other types of means are the geometric mean, logarithmic mean, and harmonic mean. Geometric mean: The nth root of the product of n observations from a data set is defined as the geometric mean of the set: G = x 1 x 2 ... x n n Logarithmic mean: The difference of the natural logarithms of the two numbers, divided by the difference between the numbers is the logarithmic mean of the two numbers. The logarithmic mean is used particularly in heat transfer and mass transfer. ln x 2 − ln x 1 x 2 − x 1 Harmonic mean: The inverse of the arithmetic mean of the inverses of all the numbers in a data set is the harmonic mean of the data. 1 1 x 1 + 1 x 2 + ...

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