statistics Two stock portfolios wera compared to see if their mean annual return

Question

statistics Two stock portfolios wera compared to see if their mean annual return were different. Assume that the type I error (alpha ) is 0.05.Here are the result:Two sample Assuming Unequal variances Since both samples are based on stock portfolios, the appropriate test is a paired t-test. True False If we do a two tailed test we should: Reject the null hypothesis of equal means since the two-tailed p-value of 0.003 is bigger than alpha. Fail to reject the null h>pothesis of equal means since the tw o-tailed p-value of 0.003 is less than the t Critical value of 2.12. Reject the null hypothesis of equal means since the two-tailed p-value of 0 003 is less than alpha. Rerun the test using the same data, but a different value of alpha since the hypothesized mean difference is equal to 0. If we do a tw o tailed test, we should:

Explanation / Answer

1.

TRUE. We can pair each stock for their returns on a given year.

2.

OPTION C, as P < 0.05.

3.

OPTION C, as |t| > tcrit, or 3.524 > 2.210.

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