Conduct a hypothesis test that the mean adjusted daily closing price has increased from the base price. Assume that the stock price is sufficiently normal to conduct a t-test. Note: you might also transform the stock to normality, that is, applying the natural logarithm.

 

Section 1

complete the hypothesis test doing the following:

1. State the null and alternative hypotheses via both an explanation and a math equation.
2. Identify the appropriate statistical test. State this clearly.
3. Conduct the test and state whether to accept or reject the null hypothesis using the p-value and an alpha of .05. You may solve the equation manually, use the Hypothesis Tester Sample file, provided.
4. Report the rejection or acceptance of the null in terms of the scenario results using laymen's terms. Jot down three-sentence paragraph that details why you can be statistically confident that the mean adjusted closing price has increased, decreased, or remained the same, and what would happen if alpha was .01.
5. Would the results of your hypothesis test be different if you used a Z-test rather than a t-test? Why or why not?

 

 

Section 2

To explore your stock dataset, you decide that you want to know whether your stock's mean daily volume has increased or decreased from the oldest closing value in your data set (in other words, the closing volume from five years ago). Often, you would conduct a test like this with two samples, but for now, we will just use the oldest closing value as the baseline. Conduct a hypothesis test to see if the mean daily volume differs from the oldest daily volume in your dataset. Complete the following.

1. State the null and alternative hypotheses via both an explanation and a math equation.
2. Identify the appropriate statistical test. State this clearly.
3. Conduct the test and state whether to accept or reject the null hypothesis using the p-value and an alpha of .05. You may solve the equation manually: use the Hypothesis Tester Sample file provided in Resources.
4. Report the rejection or acceptance of the null in terms of the scenario results using laymen's terms. For this scenario, write a three-sentence paragraph that details why you can be statistically confident that the mean adjusted closing price has increased, decreased, or remained the same, and what would happen if alpha was .01.

• 1496731644-hypothesis_tester_sample document.xlsx

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Status NEW Posted 06 Jun 2017 06:06 AM My Price 15.00

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