Answered: The economy faltered during the first…

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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The economy faltered during the first few months of 2020. Investors anticipated that the downturn would have a negative effect on the earnings of companies in the United States during the third quarter of 2020. A sample of 14 American companies was surveyed to determine whether earnings indeed collapsed following the crisis. A comparison of earnings per share showed that the average change between the third quarter of 2019 and the third quarter of 2020 was -0.22 with a standard deviation of 0.33. (We assume that the difference in earnings is normally distributed). Did earnings really decrease after the crisis? Conduct a hypothesis test at a 0.05 level of significance and obtain the critical value(s). What is your conclusion?

Features Features Normal distribution is characterized by two parameters, mean (µ) and standard deviation (σ). When graphed, the mean represents the center of the bell curve and the graph is perfectly symmetric about the center. The mean, median, and mode are all equal for a normal distribution. The standard deviation measures the data's spread from the center. The higher the standard deviation, the more the data is spread out and the flatter the bell curve looks. Variance is another commonly used measure of the spread of the distribution and is equal to the square of the standard deviation.

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