The following data was obtained from 6 years of stock market data, by calculating the number of days that the stock market indices were up more than 2% in USA and in Canada. For example, in 2012 the US index was up over 2% in 36 sessions, whereas the Canadian index was up over 2% in 33 sessions. The data for 2007-2012 is as follows: Year US Index Canadian Index 2012 36 33 2011 38 29 2010 27 26 2009 18 10 2008 13 2 2007 24 18 Using this data, we would like to check if the average number of sessions per year were the stock market index increases by more than 2% is the same for US and Canadian stock markets. What kind of test do you need to perform? and which calculation is needed to obtain the derived variable used to perform the test? Draw a normal probability plot of the derived variable and comment on the plot, is it skewed? heavy tailed? approximately normally distributed? The R functions used to build the plot are qqnorm() and qqline(). Assume that the normal probability plot shows that the variable is approximately normal and perform the appropriate test at a significance level α of 0.1. Please perform the test and state your conclusion in terms of the problem question
The following data was obtained from 6 years of stock market data, by calculating the number of days that the stock market indices were up more than 2% in USA and in Canada. For example, in 2012 the US index was up over 2% in 36 sessions, whereas the Canadian index was up over 2% in 33 sessions. The data for 2007-2012 is as follows:
Year US Index Canadian Index
2012 36 33
2011 38 29
2010 27 26
2009 18 10
2008 13 2
2007 24 18
Using this data, we would like to check if the average number of sessions per year were the stock market index increases by more than 2% is the same for US and Canadian stock markets.
- What kind of test do you need to perform? and which calculation is needed to obtain the derived variable used to perform the test? Draw a normal
probability plot of the derived variable and comment on the plot, is it skewed? heavy tailed? approximatelynormally distributed ? The Rfunctions used to build the plot are qqnorm() and qqline(). - Assume that the normal probability plot shows that the variable is approximately normal and perform the appropriate test at a significance level α of 0.1. Please perform the test and state your conclusion in terms of the problem question.
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