Question: Using significance level = 0.05 and the sample data provided, test if the mean 2019 log return for stocks trading on the Frankfurt Stock Exchange

Using significance level = 0.05 and the sample data provided, test if the mean 2019 log return for stocks trading on the Frankfurt Stock Exchange is more than 0.045 units higher than the mean for 2020. Write down the hypotheses, the test statistic, the test decision (with reason) and conclusion

index lr2019 lr2020
1 FTSE 0.152198 0.023106
2 FTSE 0.106496 -0.06684
3 FTSE 0.052306 0.099872
4 FTSE 0.094568 0.047562
5 FTSE 0.068402 0.196239
6 FTSE 0.168689 0.153569
7 FTSE 0.104371 -0.05976
8 FTSE 0.112353 -0.01647
9 FTSE 0.116404 0.001021
10 FTSE 0.047293 -0.10975
11 FTSE 0.162882 0.100458
12 FTSE 0.089893 -0.06276
13 FTSE 0.076809 -0.08803
14 FTSE 0.207695 -0.04701
15 FTSE 0.043075 -0.18326
16 FTSE 0.145092 -0.01059
17 FTSE -0.02186 -0.26737
18 FTSE 0.111464 -0.07676
19 FTSE 0.078475 -0.11606
20 FTSE -0.05965 0.073003
21 FTSE 0.103984 -0.09068
22 FTSE -0.17916 -0.28247
23 FTSE 0.019567 -0.03306
24 FTSE 0.058978 -0.14197
25 FTSE 0.154793 0.001638
26 FTSE 0.166979 0.002278
27 FTSE 0.03856 0.110011
28 FTSE 0.038779 -0.10168
29 FTSE 0.058836 -0.04613
30 FTSE 0.117891 0.107871
31 FTSE 0.126986 0.036695
32 FTSE 0.158739 0.214345
33 FTSE 0.285222 -0.00687
34 FTSE -0.12818 0.246571
35 FTSE -0.0927 -0.00436
36 FTSE 0.07664 -0.12242
37 FTSE 0.190701 0.063473
38 FTSE 0.019744 -0.10341
39 FTSE -0.05627 -0.15612
40 FTSE -0.03859 -0.19378
41 FTSE 0.089613 -0.0455
42 FTSE -0.10442 -0.08536
43 FTSE 0.133502 -0.19341
44 FTSE 0.004892 -0.5923
45 FTSE 0.086063 -0.01541
46 FTSE 0.380356 0.011565
47 FTSE 0.029539 -0.09183
48 FTSE 0.019442 0.095547
49 FTSE 0.090163 -0.1671
50 FTSE 0.117831 -0.05623
51 FTSE 0.081131 -0.2343
52 FTSE 0.280562 0.065327
53 FTSE 0.165946 -0.12985
54 FTSE 0.035467 -0.01318
55 FTSE 0.091903 -0.03809
56 FTSE 0.044896 -0.15635
57 FTSE 0.245132 0.004188
58 FTSE 0.209243 0.252396
59 FTSE -0.16825 0.028625
60 FTSE 0.145001 0.01145
61 FTSE 0.01432 -0.0317
62 FTSE 0.008298 0.028321
63 FTSE 0.071433 -0.02655
64 FTSE 0.128211 0.051131
65 FTSE 0.16608 0.011632
66 FTSE 0.081793 0.084485
67 FTSE -0.08453 -0.78825
68 FTSE 0.095318 -0.10956
69 FTSE -0.06171 -0.00839
70 FTSE 0.135042 0.000391
71 FTSE 0.183069 0.023736
72 FTSE 0.141542 -0.04089
73 FTSE -0.01386 -0.23607
74 FTSE 0.108451 -0.01099
75 FTSE 0.092301 -0.04972
76 FTSE 0.097503 -0.08407
77 FTSE 0.153717 0.103984
78 FTSE 0.123883 0.018181
79 FTSE 0.067893 -0.18443
80 FTSE 0.091168 -0.01172
81 FTSE 0.15212 -0.06687
82 FTSE 0.127899 -0.04252
83 FTSE 0.024856 0.004123
84 FTSE 0.1077 -0.02287
85 FTSE 0.194035 -0.08125
86 FTSE -0.0178 -0.08404
87 FTSE 0.065558 0.119911
88 FTSE 0.024613 -0.19402
89 FTSE 0.100283 -0.12487

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