# Question: Microlenders are institutions that lend relatively small amounts of money

Microlenders are institutions that lend relatively small amounts of money to businesses. An article on microlenders compared the average return on equity for lenders of two categories based on their credit ratings: Alpha versus Beta. For the Alpha group, a random sample of 74 firms, the average return on equity was 28%. For the Beta group, a random sample of 65 firms, the average return on equity was 22%.Assume both sample standard deviations were 6%, and test for equality of mean return on investment using α = 0.05.

**View Solution:**## Answer to relevant Questions

Refer to the situation of problem 8-72. The study also compared average portfolios of microloans. For the Alpha group it was $50 million, and for the Beta group it was $14 million. Assume the Alpha group had a standard ...Two statisticians independently estimate the variance of the same normally distributed population, each using a random sample of size 10. One of their estimates is 3.18 times as large as the other. In such situations, how ...Explain how information about the variance components in a data set can lead to conclusions about population means. Use the data of Table 9–1 and the Tukey procedure to determine where differences exist among the triangle, circle, and square population means. Use α = 0.01. In table The Neilsen Company, which issues television popularity rating reports, is interested in testing for differences in average viewer satisfaction with morning news, evening news, and late news. The company is also interested ...Post your question