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An analysis was conducted to analyze the stock price of financial firms and nonfinancial firms. The following table contains the findings. Financial firms Nonfinancial firms
An analysis was conducted to analyze the stock price of financial firms and nonfinancial firms. The following table contains the findings. Financial firms Nonfinancial firms Number of average standard Number of average standard observations price deviation observations price deviation 35 $73.74 $23.06 88 $44.56 $20.89 Assume the populations (for financial firms and nonfinancial firms) are normally distributed and that the samples are independent. An F-test was conducted first to determine whether the population variances are the same, which yields a p-value of 0.69. The intention is to exam whether the population means of financial firms and nonfinancial firms are the same. 4.1 (2 points). Formally state your hypothesis 4.2 (4 points). Identify and calculate appropriate test-statistic (Hint: use t-statistic in this case)
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