Answer the following questions about hypothesis testing. Assume that: H o : The companys ROA is the
Question:
Answer the following questions about hypothesis testing. Assume that:
Ho: The company’s ROA is the same as the industry’s average ROA.
HA: The company’s ROA is not the same as the industry’s average ROA.
a. If the alpha threshold is 0.05, and the p-value on a t-test comparing a company’s ROA to the industry average ROA is 0.045, what do you conclude about the null hypothesis? Is the ROA the same as or different from that of the industry?
b. If the alpha threshold is 0.10, and the p-value on a t-test comparing one company’s ROA to the industry average ROA is 0.11, what do you conclude about the null hypothesis? Is the ROA the same as or different from that of the industry?
Step by Step Answer:
Introduction To Business Analytics
ISBN: 9781265454340
1st Edition
Authors: Vernon Richardson, Marcia Watson