Do sit down restaurant franchises and fast food franchises differ significantly

Question

Do sit down restaurant franchises and fast food franchises differ significantly in stock price? Specifically, is the average stock price for sit-down restaurants different from the average stock price for fast food restaurants? A 2 sample t-test is run on data recorded from the stock exchange and a p-value is calculated to be 0.0389. What is the appropriate conclusion? 1) The average stock price of sit-down restaurants is equal to the average stock price 2) The average stock price of sit-down restaurants is significantly different from the a We did not find enough evidence to say a significant difference exists between the of fast food restaurants. average stock price of fast food restaurants. average stock price of sit-down restaurants and the average stock price of fast food restaurants. 4) The average stock price of sit-down restaurants is significantly greater than the average stock price of fast food restaurants. 5) The average stock price of sit-down restaurants is significantly less than the average stock price of fast food restaurants..

Explanation / Answer

The difference between two groups is judged to be statistically significant when p = 0.05 or less. At p= 0.05, the differences between the two groups have only a 5% probability of occurring by chance alone.

Here p value<0.05 hence 2 is correct answer.

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