a. Explanation A random sample of 35 stocks with mean price of $26.89 and standard deviation of $23.41 has been taken to test the predicted the stock price of all 2,000 stocks. It is given that the sample mean is x ¯ = 26.89 and the sample standard deviation s = 23.41 . Denote μ as the population mean price of all 2,000 stocks b. To determine Explain whether z -test or t -test is to be performed. c. To determine Find the value of the test statistic. d. To determine Decide whether the null hypothesis H 0 is rejected at α = 0.05 level. e. To determine State the appropriate conclusion at α = 0.05 level of significance.

2nd Edition

ISBN: 9781259570643

Author: Navidi

Publisher: MCG

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Chapter 8, Problem 4RE

To determine

State the null and alternate hypothesis.

To determine

Explain whether z-test or t-test is to be performed.

To determine

Find the value of the test statistic.

To determine

Decide whether the null hypothesis H0 is rejected at α=0.05 level.

To determine

State the appropriate conclusion at α=0.05 level of significance.

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Chapter 8, Problem 3RE

Chapter 8, Problem 5RE

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