a)
To verify whether there are any outliers in given data.
a)
Explanation of Solution
Given:The Minitab output of data of broker’s returns for a random sample of 36 weeks and a significance test to compare the returns with market performance are shown below
Concept used:The boundaries for outliers are shown below
Any values which does not lie between these boundaries are considered as outliers in a data distribution.
Calculation:From the given information
We get Inter
Interpretation:
Here the minimum value is -10.270 and maximum value is 7.340. Hence all values do lie between the boundaries of outliers. Hence there are no outliers in the data.
b)
To interpret the p value from Minitab output.
b)
Explanation of Solution
From the Minitab output the p value is 0.003.
If the average percentage of return is 0.95% per month, then the probability of getting a random sample of 36 weeks with an average returns -1.441 or less is approximately 0.003. It also concludes that the average returns for 36 weeks is less than 0.95% per month.
c)
To verify if the data provide convincing evidence to support the lawyer’s case.
c)
Explanation of Solution
Concept used:The conditions to perform a one sample t testfor µ.The sample has to be randomly selected.
The population should follow a
The sample should be less than 10% of the population.
Calculation:
To test the claim that the average returns per month µ is less than its true value 0.95%.
The null and alternate hypothesis are shown below
The sample of 36 weeks when stock market did well are selected randomly. The population is of large size, so we can approximately assume it to be a normal distribution. There will be more than 360 weeks where stock market did well, so 10% condition is also satisfied.
A one sample t test is run and we get test statistic of
Conclusion:At 5% level of significance there is evidence to conclude that the returns are less than 0.95% per month.
Chapter 9 Solutions
The Practice of Statistics for AP - 4th Edition
Additional Math Textbook Solutions
Statistics for Business and Economics (13th Edition)
Elementary Statistics (13th Edition)
Introductory Statistics (10th Edition)
Introductory Statistics
Essentials of Statistics, Books a la Carte Edition (5th Edition)
Elementary Statistics: Picturing the World (6th Edition)
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