Question: Answer the following questions about hypothesis testing. Assume that: H o : The companys ROA is the same as the industrys average ROA. H A

Answer the following questions about hypothesis testing. Assume that:

H_o: The company’s ROA is the same as the industry’s average ROA.

H_A: 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 Solution

★★★★★

3.41 Rating (170 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a Because the ttests pvalue is less than alpha we should reject t... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Business Analytics Data Questions!

A consumer electronics firm has developed a new type of remote control button that is designed to operate longer before becoming intermittent. A random sample of 35 of the new buttons is selected and...

1. The famous capital asset pricing model or CAPM is a single factor model that characterizes the portion of an assets total return that results from systematic movements in the broader market. It is...

Poe Company thought its common stock was undervalued in 2024. Poe originally issued 50 million shares of its $1 par common stock for $18 / share several years ago. Although its Board of Directors was...

1. (LO 3.1, 3.6) Answer the following questions about hypothesis testing. Assume that: Ho: The companys ROA is the same as the industrys average ROA. HA: The companys ROA is not the same as the...

Using the Annual Report of your selected company (WALMART), answer the following questions in the Discussion: What is the value of the company's inventory at year end? What was the amount of cost of...

lower returns, other things equal. The regression model we try is the following: AR, = Be + B,PERCBUYS+B_PERCSELLS; + B,SALE; +B_RO, + &; In this study we focus on the data for the first quarter of...

Lesson 7: Confidence Intervals NAME Lab Activity Answer the following questions showing all work. I strongly suggest using Minitab Express to answer questions when possible, as opposed to hand...

pls i need help with the samsung wiley Annual Report Project only the other 4 Attachment is a guideline telling you what need to be done.pls see the attached Apple company wiley Annual Report ANNUAL...

c ews Translate CASE O The first part of the case, presented in the previous chapter, discussed the situation of Computron Industries after an expansion program. A large loss occurred rather than the...

Why was a fixed price of $50 not the best way of allocating used laptops? Suggest other possible ways of distributing the laptops that would be efficient.

True or false a. MMs propositions assume perfect financial markets, with no distorting taxes or other imperfections. b. MMs proposition 1 says that corporate borrowing increases earnings per share...

" No data redundancy" is a benefit of using the cloud storage. t / f

14. People who attempt intrusion can be classified into four different categories. Describe them.

The Ortega Food Company needs to ship 100 cases of hot tamales from its warehouse in San Diego to a distributor in New York City at minimum cost. The costs associated with shipping 100 cases between...

A cotton grower in south Georgia produces cotton on farms in Statesboro and Brooklet, ships it to cotton gins in Claxton and Millen, where it is processed, and then sends it to distribution centers...

The blood bank wants to determine the least expensive way to transport available blood donations from Pittsburg and Staunton to hospitals in Charleston, Roanoke, Richmond, Norfolk, and Suffolk. The...

Explain the difference between "diversification" and "asset allocation". If you have $1,000 for asset allocation, what assets would you purchase at your current life stage (dependent or independent)...

Garvey Company's unadjusted trial balance includes the following account balances as of December 31, 2018: 9 2 03:15:38 Skipped Debits Credits Cash $ 71,950 Accounts Receivable 128,300 Interest...

Using the IBM income statement data on page 78 in the annual report, create a common size income statement 2019 2017 and 2016. How to do a common income statement? Also along with evaluate IBM by...