2. Create the printout for testing whether the mean 52-week high stock price of

Question

2. Create the printout for testing whether the mean 52-week high stock price of all NASDAQ stocks differs from $27.00 and attach it here. Answer the following questions regarding this printout: Student Edition of Statistix 10.0 11/8/2017, 4:30:23 PM One-Sample T Test Null Hypothesis: ·27 Alternative Byp: 27 Lower Upper 95% c.1 95% C.1 Variable HIGH Mean 132.8355.154 1.92 24 0.0670 SE 18.994 246.66 a. State the assumption (in the words of the problem) necessary for this printout to be valid b. Use the p-value given in this problem to state the conclusion that you would make in the words of the problem. Make sure you include the value of that you select as part of this conclusion. c. Suppose it was really desired to conduct a one-tailed test instead of the two-tailed test. Use your knowledge of p-values to write in the space below the value of the one-tailed p-value that should be used in the interpretation of the results. One-tailed p-value-

Explanation / Answer

Solution:

(a)Assumptions for t test:

-Interval or ratio scale of measurement (approximately interval)

-Random sampling from a defined population

-Characteristic is normally distributed in the population

(b) From given output of t test,

P-value = 0.067

Our test is two tailed.

From given output decision will be,

P-value > , hence fail to reject null hypothesis, where = 0.05

That is mean value is equal to 27.

(c) Now if we test one tailed test then

We have to divide to p-value by 2.

Now p-value for one tailed test becomes , p-value = 0.0335

Here p-value < hence we reject null hypothesis.where = 0.05

Done

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