A random sample of n1=17 securities in Economy A produced mean returns of x1=5.9% with s1=2.5% while another random sample of n2=20securities in Economy B produced mean returns of x2=5.1%x2=5.1% with s2=2%.. At =0.05, can we infer that the returns differ significantly between the two economies?

Assume that the samples are independent and randomly selected from normal populations with equal population variances (1^2=2^2)

T-Distribution Table

a. Calculate the test statistic.

t=

Round to three decimal places if necessary

b. Determine the critical value(s) for the hypothesis test.

• +

Round to three decimal places if necessary

c. Conclude whether to reject the null hypothesis or not based on the test statistic.

Reject

Fail to Reject