Statistics for Business and Economics (13th Edition)

13th Edition

ISBN: 9780134506593

Author: James T. McClave, P. George Benson, Terry Sincich

Publisher: PEARSON

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Concept explainers

2-Proportion Test

In a 2-proportion test, two separate proportions are measured at the same time, and their similarity is evaluated. It is also known as a 2-proportion z-test, and a comparison of two different proportions is done in this method.

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Textbook Question

Chapter 6.3, Problem 6.36ACI

Performance of stock screeners. In Exercise 2.44 (p. 71) you learned that stock screeners are automated tools used by investment companies to help clients select a portfolio of stocks to invest in. The table below lists the annualized percentage return on investment (as compared to the Standard & Poor’s 500 Index) for 13 randomly selected stock screeners provided by the American Association of Individual Investors (AAII).

9.0

−.1

−1.6

14.6

16.0

7.7

19.9

9.8

3.2

24.8

17.6

10.7

9.1

a. Find a 90% confidence interval for the average annualized percentage return on investment of all stock screeners provided by AAI I. Interpret the result.
b. Recall that a negative annualized return reflects a stock portfolio that performed worse than the S&P 500. On average, do the AAII stock screeners perform worse or better than the S&P 5007 Explain.
c. What assumption about the distribution of the annualized percentage returns on investment is required for the inference, part b, to be valid? Is this assumption reasonably satisfied?

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Chapter 6.3, Problem 6.35ACI

Chapter 6.3, Problem 6.37ACI

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Not use ai please

Chapter 6 Solutions

Statistics for Business and Economics (13th Edition)

Ch. 6.2 - Find z/2 for each of the following: a. a . = .10...Ch. 6.2 - What is the confidence level of each of the...Ch. 6.2 - A random sample of n measurements was selected...Ch. 6.2 - A random sample of 90 observations produced a mean...Ch. 6.2 - A random sample of 70 observations from a normally...Ch. 6.2 - Use the applet Confidence Intervals for a Mean...Ch. 6.2 - Use the applet Confidence Intervals for a Mean...Ch. 6.2 - Prob. 6.6LM Ch. 6.2 - Explain the difference between an interval...Ch. 6.2 - Prob. 6.8LM

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