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 ...

A B We should perform a t test because the population standard devia ...

Playing the market: The Russell 2000 is a group of 2000 small-company stocks. On June 21. 2011

Question:

Playing the market: The Russell 2000 is a group of 2000 small-company On June 21. 2011 a random sample of 35 of these 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 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. Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing...