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1) Compute a 95 percent condence interval for the mean S&P 500 daily returns. What is your interpretation of this condence interval? Compute a 90
1) Compute a 95 percent condence interval for the mean S&P 500 daily returns. What is your interpretation of this condence interval? Compute a 90 percent condence interval. Explain in words the difference between the 95 percent and the 90 percent condence interval. Which one is wider and why? 2) Compute a 95 percent condence interval for the difference between the average Apple and the average Netix returns. What is your interpretation of this condence interval? 3) Test the null hypothesis, allowing for a 5 percent chance of a Type I error, that there is no difference in the population average between the Apple returns and the Netix returns (twotailed test). Explain how this relates to your condence interval in part 2). 4) Suppose we want to determine whether Google and Netflix stocks perform well when Apple stock is performing well. Test the null hypothesis that there is no difference in average Google returns when Apple returns are positive, relative to when Apple returns are negative, allowing for a 10 percent chance of a Type I error. Likewise, test the null hypothesis that there is no difference in average Netix returns when Apple returns are positive, relative to when Apple returns are negative, allowing for a 10 percent chance of a Type I error. How do you interpret the results of these tests
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