Question: BACKGROUND INFO: Study done by the ABS, took data from small businesses on their asset-liability ratio, randomly selected 85 small businesses. NEEDED DATA: Still operational

BACKGROUND INFO:

Study done by the ABS, took data from small businesses on their asset-liability ratio, randomly selected 85 small businesses.

NEEDED DATA:

Still operational businesses asset liability ratios:

Operational Asset_Liability_Ratio
Yes 1.81
Yes 1.91
Yes 1.53
Yes 1.81
Yes 2.21
Yes 1.72
Yes 1.92
Yes 1.3
Yes 1.39
Yes 1.39
Yes 1.63
Yes 1.78
Yes 1.32
Yes 2.22
Yes 1.49
Yes 1.32
Yes 1.83
Yes 1.77
Yes 1.4
Yes 2.02
Yes 1.65
Yes 1.53
Yes 2.14
Yes 1.91
Yes 1.71
Yes 1.95
Yes 2.16
Yes 1.63
Yes 1.73
Yes 1.53
Yes 1.94
Yes 1.55
Yes 1.75
Yes 1.56
Yes 1.77
Yes 1.32
Yes 1.55
Yes 1.83
Yes 1.63
Yes 1.78
Yes 1.86
Yes 2.1
Yes 1.59
Yes 1.77
Yes 1.74
Yes 1.96
Yes 1.64
Yes 1.65
Yes 1.79
Yes 1.82
Yes 2.12
Yes 1.35
Yes 1.87
Yes 0.41

Now closed businesses asset liability ratios:

Operational Asset_Liability_Ratio
No 0.51
No 1.07
No 0.65
No 0.5
No 0.81
No 0.79
No 0.38
No 0.95
No 0.7
No 0.67
No 0.58
No 0.83
No 0.81
No 0.17
No 0.94
No 0.51
No 0.69
No 0.58
No 0.32
No 0.77
No 0.5
No 0.42
No 0.54
No 0.75
No 0.52
No 0.43
No 0.43
No 0.19
No 0.5
No 0.48
No 0.26

QUESTION:

An economisthascommentedthatbasedonherexperience she expected a difference of 1 in meanAsset_Liability_Ratio, for small businesses which were still operating five years later and those that were not. Use support from a hypothesis test performed at the 5% significance level to explain what you would conclude about the economist's comment.

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