Question

Playing the market: The Russell 2000 is a group of 2000 small-company stocks. On June 21. 2011 a random sample of 35 of these stocks had a mean price of $26.89, with a standard deviation of $23.41. A stock market analyst predicted that the mean price of all 2000 stocks would be $25.00. Can you conclude that the mean price differs from $25.00?
a. State the null and alternate hypotheses.
b. Should we perform a z-test or a t-test? Explain.
c. Compute the value of the test statistic.
d. Do you reject Ho? Use the α = 0.05 level
e. State a conclusion.


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  • CreatedSeptember 23, 2015
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