A random sample of n1=181=18 securities in Economy A produced mean returns of x1=5.4%x1=5.4% with s1=1.8%1=1.8% while another random sample of n2=192=19 securities in Economy B produced mean returns of x2=4.9%x2=4.9% with s2=2.1%.2=2.1%. At =0.1=0.1, 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 (12=22)(12=22).

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