2/1/2016 Home | Chegg.com BOOKS STUDY MORE home / study / questions and answers / math / statistics and probability / consider the following scenario: we collect daily ... Find books, solutions, tutors and more... Your question has been answered! Rate it below. Post new question Let us know if you got a helpful answer. Expert answers in as little as 30 minutes Question Consider the following scenario: We collect daily market price data for the common share of XYZ corporation. The data contains the last 60 trading days. The average daily price change over the course of those 60 days is $0.010. The sample standard deviation is $0.300. Note, we don't know what the population standard deviation is. Can we argue with 90% confidence that the population mean (of the average daily price change of the common share of XYZ corporation) is indistinguishable from zero? Continue to post Continue to edit and attach image(s). Statistics and Probability tutors who can help right now Anastasia G. Question 1 options: University of Chicago A) Yes, we can't reject the hypothesis that the population mean is zero. Nikunj D. Birla Institute of Tec... 45 45 B) No, we reject the hypothesis that the population mean is zero. Michael S. C) None of the above as not enough information is provided. Ball State University 39 See more tutors EXCEL USE IS OKAY. JUST TELL ME THE COMMANDS. PLEASE SHOW YOUR WORK!!!!!! Comment Expert Answer Anonymous answered this 3 hours later 2,728 answers Was this answer helpful? 0 0 Formulating the null and alternative hypotheses, Ho: u = 0 Ha: u =/ 0 As we can see, this is a two tailed test. Thus, getting the critical z, as alpha = 0.1 , alpha/2 = 0.05 zcrit = +/ 1.644853627 [=NORMSINV(0.05) will give this area] Getting the test statistic, as X = sample mean = 0.01 uo = hypothesized mean = 0 n = sample size = 60 s = standard deviation = 0.3 Thus, z = (X uo) * sqrt(n) / s = 0.25819889 As |z| < 1.645, we FAIL TO REJECT THE NULL HYPOTHESIS. Hence, OPTION A: Yes, we can't reject the hypothesis that the population mean is zero. [CONCLUSION] https://www.chegg.com/homeworkhelp/questionsandanswers/considerfollowingscenariocollectdailymarketpricedatacommonsharexyzcorporation... 1/2 2/1/2016 Home | Chegg.com home / study / questions and answers / math / statistics and probability / consider the following scenario: we collect daily ... Your question has been answered! Rate it below. Post new question Let us know if you got a helpful answer. Expert answers in as little as 30 minutes Question Consider the following scenario: We collect daily market price data for the common share of ZYX corporation. The data contains the last 60 trading days. The average daily price change over the course of those 60 days is $0.010. The sample standard deviation is $0.010. Note, we don't know what the population standard deviation is. Continue to post Continue to edit and attach image(s). Statistics and Probability tutors who can help right now Can we argue with 90% confidence that the population mean (of the average daily price change of the common share of ZYX corporation) is indistinguishable from zero? Anastasia G. Question 2 options: University of Chicago A) Yes, we can't reject the null hypothesis that the population mean is zero. Nikunj D. Birla Institute of Tec... 45 45 B) No, we reject the null hypothesis that the population mean is zero. Michael S. C) None of the above as not enough information is provided in the question. Ball State University EXCEL USE IS OKAY. JUST TELL ME THE COMMANDS. PLEASE SHOW YOUR WORK!!!!!! 39 See more tutors Comment Expert Answer Anonymous answered this 3 hours later 4,713 answers Was this answer helpful? 0 0 Hypotheses are: Since population standard deviation is unknown and hypothesis test population mean so t test should be used. Here sample size is large so we can assume that sampling distribution of sample mean is normal. Here we have following information: So test statitics will be Here test is two tailed and degree of freedom of the test is df=n1=601=59. So pvalue of the test is 0.0000. Since pvalue of the test is less than 0.10 so we reject the null hypothesis. Comment https://www.chegg.com/homeworkhelp/questionsandanswers/considerfollowingscenariocollectdailymarketpricedatacommonsharezyxcorporation... 2/3 2/1/2016 Home | Chegg.com BOOKS STUDY MORE home / study / questions and answers / math / statistics and probability / consider a scenario where we analyze the pricing ... Find books, solutions, tutors and more... Your question has been answered! Rate it below. Post new question Let us know if you got a helpful answer. Expert answers in as little as 30 minutes Question Consider a scenario where we analyze the pricing behavior of two common shares (one in XYZ corporation and one in MIM corporation). We have collected daily price changes for both stocks for the last 100 trading days. The average daily price change in the stock of XYZ corporation during that time period is $0.06 with the population standard deviation of $0.10. The stock of MIM corporation has the sample average daily price change of $0.03 and the population standard deviation of $0.09. Based on this information, can we conclude that the two stocks exhibit equal average daily growth rates? Please conduct a 90% confidence test to investigate the hypothesis that the two average daily price changes are equal. PLEASE ASSUME THAT THE TWO standard deviations listed here are the POPULATION standard deviations. Continue to post Continue to edit and attach image(s). Statistics and Probability tutors who can help right now Michael S. Ball State University Bayode A. Question 3 options: University of Texas i... A) Fail to reject the null that both means are equal. Scotty G. Washington and Le... 39 11 236 B) Reject the null that both means are equal. See more tutors C) None of the above as not enough information is provided. EXCEL USE IS OKAY. JUST TELL ME THE COMMANDS. PLEASE SHOW YOUR WORK!!!!!! Comment Expert Answer Anonymous answered this 3 hours later 2,728 answers Was this answer helpful? 0 0 Formulating the null and alternative hypotheses, Ho: u1 u2 = 0 Ha: u1 u2 =/ 0 At level of significance = 0.1 As we can see, this is a two tailed test. Calculating the means of each group, X1 = 0.06 X2 = 0.09 Calculating the standard deviations of each group, s1 = 0.1 s2 = 0.09 Thus, the standard error of their difference is, by using sD = sqrt(s1^2/n1 + s2^2/n2): n1 = sample size of group 1 = 100 n2 = sample size of group 2 = 100 Also, sD = 0.013453624 Thus, the t statistic will be https://www.chegg.com/homeworkhelp/questionsandanswers/considerscenarioanalyzepricingbehaviortwocommonsharesonexyzcorporationone... 1/2 2/1/2016 Home | Chegg.com z = [X1 X2 uD]/sD = 2.229882439 where uD = hypothesized difference = 0 Now, the critical value for z is zcrit = +/1.644853627 [=NORMSINV(0.05) will give you this] As |z| > 1.6449, then we reject Ho. OPTION B: Reject the null that both means are equal. [ANSWER] Comment ABOUT CHEGG RESOURCES TEXTBOOK LINKS STUDENT SERVICES COMPANY Media Center Site Map Return Your Books Chegg Study Help Chegg College Blog Chegg For Good Mobile Textbook Rental Chegg Coupon Jobs College Marketing Publishers eTextbooks Solutions Manual Customer Service Privacy Policy Join Our Affiliate Program Used Textbooks Scholarships Give Us Feedback Your CA Privacy Rights Advertising Choices Cheap Textbooks Career Search Terms of Use College Textbooks Online Tutoring General Policies Sell Textbooks Internships Intellectual Property Rights College Search Investor Relations Enrollment Services Over 6 million trees planted 20032016 Chegg Inc. All rights reserved. https://www.chegg.com/homeworkhelp/questionsandanswers/considerscenarioanalyzepricingbehaviortwocommonsharesonexyzcorporationone... 2/2 2/1/2016 Home | Chegg.com BOOKS STUDY MORE home / study / questions and answers / math / statistics and probability / consider a scenario where we analyze the pricing ... Find books, solutions, tutors and more... Your question has been answered! Rate it below. Post new question Let us know if you got a helpful answer. Expert answers in as little as 30 minutes Question Consider a scenario where we analyze the pricing behavior of two common shares (one in XYZ corporation and one in MIM corporation). We have collected daily price changes for both stocks for the last 100 trading days. The average daily price change in the stock of XYZ corporation during that time period is $0.06 with the population standard deviation of $0.10. The stock of MIM corporation has the sample average daily price change of $0.03 and the population standard deviation of $0.09. Please test the hypothesis that the average daily price change in XYZ corporation exceeds that of MIM corporation by $0.02, i.e. mean(XYZ) - mean (MIM) = 0.02 Please conduct a 90% confidence test to investigate the hypothesis. PLEASE ASSUME THAT THE TWO standard deviations listed here are the POPULATION standard deviations. Question 4 options: Continue to post Continue to edit and attach image(s). Statistics and Probability tutors who can help right now Michael S. Ball State University Bayode A. University of Texas i... Scotty G. Washington and Le... A) Fail to reject the null hypothesis. 39 11 236 See more tutors B) Reject the null hypothesis C) None of the above What was the value of the test statistic you computed in your test? A) 0.743 B) 0.881 C) 0.918 D) 1.297 E) None of the above EXCEL USE IS OKAY. JUST TELL ME THE COMMANDS. PLEASE SHOW YOUR WORK!!!!!! Comment Expert Answer Anonymous answered this 3 hours later 2,728 answers Was this answer helpful? 0 0 Formulating the null and alternative hypotheses, Ho: u1 u2 <= 0.02 Ha: u1 u2 > 0.02 https://www.chegg.com/homeworkhelp/questionsandanswers/considerscenarioanalyzepricingbehaviortwocommonsharesonexyzcorporationone... 1/3 2/1/2016 Home | Chegg.com At level of significance = 0.1 As we can see, this is a right tailed test. Calculating the means of each group, X1 = 0.06 X2 = 0.03 Calculating the standard deviations of each group, s1 = 0.1 s2 = 0.09 Thus, the standard error of their difference is, by using sD = sqrt(s1^2/n1 + s2^2/n2): n1 = sample size of group 1 = 100 n2 = sample size of group 2 = 100 Also, sD = 0.013453624 Thus, the z statistic will be z = [X1 X2 uD]/sD = 0.743294146 where uD = hypothesized difference = 0.02 Now, the critical value for z is zcrit = 1.281551566 [This can be produced using =NORMSINV(0.10)] As z < 1.28155, WE FAIL TO REJECT THE NULL HYPOTHESIS. Hence, OPTION A: Fail to reject the null hypothesis. [ANSWER] ******************************** As above, OPTION A: z = 0.743 [ANSWER] *********************************** Comment ABOUT CHEGG RESOURCES TEXTBOOK LINKS STUDENT SERVICES COMPANY Media Center Site Map Return Your Books Chegg Study Help Chegg College Blog Chegg For Good Mobile Textbook Rental Chegg Coupon Jobs College Marketing Publishers eTextbooks Solutions Manual Customer Service Privacy Policy Join Our Affiliate Program Used Textbooks Scholarships Give Us Feedback Your CA Privacy Rights Advertising Choices Cheap Textbooks Career Search Terms of Use College Textbooks Online Tutoring General Policies Sell Textbooks Internships Intellectual Property Rights College Search Investor Relations Enrollment Services https://www.chegg.com/homeworkhelp/questionsandanswers/considerscenarioanalyzepricingbehaviortwocommonsharesonexyzcorporationone... 2/3