Concept explainers
To test whether there is any significant difference in the return on investment as measured by percent (increase or decrease) in the price of the stock A and B from its date of purchase.
Explanation of Solution
Given the following information:
The test procedure:
The null and alternative hypothesis is given by
The test statistic is given by,
Reject the null hypothesis if
Calculation:
On substituting the given values the test statistic is given by
=
The critical value at 0.05 level of significance is
Since
Chapter 10 Solutions
The Practice of Statistics for AP - 4th Edition
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