Explanation Given info: The data shows that 5 –year rate of return (in percent) for a random sample of stocks in financial services and an independent random sample of stocks in health care. Calculation: The claim is that “there is a difference in the rate return of companies in the financial services sector versus those in the health care over the past 5 years”. The hypotheses are given below: Null hypothesis: H 0 : μ FS = μ HC Alternative hypothesis: H 1 : μ FS ≠ μ HC (claim) Software Procedure: Step by step procedure to obtain test statistic and P -value using the MINITAB software: Choose Stat > Basic Statistics > 2-Sample t . Choose Sample in different columns . In first, select Financial Services . In second, select Health Care . Choose Options . In Confidence level , enter 95 . In Alternative , select not equal . Click OK in all the dialogue boxes. Output using the MINITAB software is given below: From the MINITAB output, the test statistic and P -value are –0.17 and 0.868. Critical value: Here, the sample sizes of sample 1 and sample 2 are 20 and 19. Therefore, df = Smaller of ( n 1 − 1 , n 2 − 1 ) = Smaller ( 20 − 1 , 19 − 1 ) = 18 Software Procedure: Step-by-step procedure to obtain the critical value using the MINITAB software: Choose Graph > Probability Distribution Plot choose View Probability > OK. From Distribution , choose ‘ t ’ distribution. In Degrees of freedom , enter 18 . Click the Shaded Area tab. Choose Probability value and Both Tails for the region of the curve to shade. Enter the Probability value as 0

Fundamentals of Statistics (5th Edition)

5th Edition

ISBN: 9780134508306

Author: Michael Sullivan III

Publisher: PEARSON

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Chapter 11.4, Problem 18AYU

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To test: Whether there is a difference in the rate return of companies in the financial services sector versus those in the health care over the past 5 years with the level of significance 0.05.

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Chapter 11.4, Problem 17AYU

Chapter 11.4, Problem 19AYU

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Chapter 11 Solutions

Fundamentals of Statistics (5th Edition)

Ch. 11.1 - A sampling method is _____ when the individuals...Ch. 11.1 - A sampling method is _____ when the individuals...Ch. 11.1 - In Problems 38, determine whether the sampling is...Ch. 11.1 - In Problems 38, determine whether the sampling is...Ch. 11.1 - In Problems 38, determine whether the sampling is...Ch. 11.1 - In Problems 38, determine whether the sampling is...Ch. 11.1 - In Problems 38, determine whether the sampling is...Ch. 11.1 - Prob. 8AYU Ch. 11.1 - In Problems 912, conduct each test at the = 0.05...Ch. 11.1 - In Problems 912, conduct each test at the = 0.05...

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To test: Whether there is a difference in the rate return of companies in the financial services sector versus those in the health care over the past 5 years with the level of significance 0.05.

Solution Summary: The author concludes that there is no sufficient evidence to support the claim. The test statistic and P -value are –0.17 and 0.868.

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To test: Whether there is a difference in the rate return of companies in the financial services sector versus those in the health care over the past 5 years with the level of significance 0.05.

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Chapter 11 Solutions