To compare the stock-picking abilities of two brokerage firms, we compared the annual gain (exclu


Question: 31 To compare the stock-picking abilities of two brokerage firms, we compared the annual gain (excluding brokerage fees) for a $1000 investment in each of 30 stocks listed on each of the two firms' "most recommended" lists of stocks. The means and standard deviations (in dollars) for each of the two samples are shown in the accompanying table. We want to determine whether the data provide sufficient evidence to indicate a difference between the two brokerage firms in the mean return per recommended stock.

a. State the alternative hypothesis that will best answer this question.

b. State Ho.

c. Give the rejection region for the test for a = .01.

d. Conduct the test and state your conclusions.

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See Answer: The solution consists of 3 pages
Deliverables: Word Document

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