The Business Council of Australia is interested in the level of capitalisation of midcap companies (i.e....

  

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The Business Council of Australia is interested in the level of capitalisation of midcap companies (i.e. companies loosely classified as having a market capitalisation in the mid-range of all companies). They believe that the capitalisation is less than $127 million. You have been asked to conduct a hypothesis test to determine if the Business Council of Australia is correct. You take a sample of 49 midcap companies and found that the average capitalisation is $123 million with a standard deviation of $11 million. (a) Set up the null and alternative hypotheses words and symbols. (b) Ho: (d) H1: (Symbols) (Words) (Symbols) (Words) With a hypothesis test, it is usual to specify a level of significance. Decide on the significance level of alpha (a). (c) On what basis have you chosen the answer to part (b). Could other levels have been appropriate? You have been asked to conduct a hypothesis test to determine if the Business Council of Australia is correct. What condition/assumption must be satisfied before you can do this? The Business Council of Australia is interested in the level of capitalisation of midcap companies (i.e. companies loosely classified as having a market capitalisation in the mid-range of all companies). They believe that the capitalisation is less than $127 million. You have been asked to conduct a hypothesis test to determine if the Business Council of Australia is correct. You take a sample of 49 midcap companies and found that the average capitalisation is $123 million with a standard deviation of $11 million. (a) Set up the null and alternative hypotheses words and symbols. (b) Ho: (d) H1: (Symbols) (Words) (Symbols) (Words) With a hypothesis test, it is usual to specify a level of significance. Decide on the significance level of alpha (a). (c) On what basis have you chosen the answer to part (b). Could other levels have been appropriate? You have been asked to conduct a hypothesis test to determine if the Business Council of Australia is correct. What condition/assumption must be satisfied before you can do this?

Answer rating: 100% (QA)

a The null and alternative hypotheses can be set up as follows Ho null hypothesis The average capita... View the full answer