A random sample of n1=20 securities in Economy A produced mean returns of x1=5.8% with s1=2.1%while another random sample of n2=17 securities in Economy B produced mean returns of x2=4.7%with s2=2.4%. At =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).

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