\"Asian Flu\" Case Study: One of the most significant economic events at the end of the 20th century was the "Asian Flu", which started in 1997, led to economic contraction in several Asian countries and spawned a recession in many parts of the world. Investors anticipated that the downturn in the Asian economy would have a negative effect on the earnings of companies in the United States during the fourth quarter of 1997. Sample data from 14 companies were collected to show the earnings per share (EPS) for the fourth quarter of 1996 and the fourth quarter of 1997 (the Wall Street Journal, January 28, 1998) and is shown below. Company Atlantic Richfield Balchem Corp Black & Decker Corp Dial Corp DSC Communications Eastman Chemical Excel Communications Federal Signal Ford Motor Company GTE Corp ITT Industries Kimberly-Clark Minnesota Mining & Mfr. Procter & Gamble Earnings 96 1.16 0.16 0.97 0.18 0.15 0.77 0.28 0.40 0.97 0.81 0.59 0.61 0.91 0.63 Earnings 97 1.17 0.13 1.02 0.23 -0.32 0.36 -0.14 0.29 1.45 0.73 0.60 -0.27 0.89 0.71 A test of paired differences in means was performed at a significance level of 0.05 using MSExcel and the output is below. MS-Excel Results Using Data ==> Data Analysis ==> Paired Two Sample for Means Test t-Test: Paired Two Sample for Means 0 H0: (1- 2) = D 0 and H1: (1- 2) = D < 0 H0: (1- 2) = D = 0 and H1: (1- 2) = D 0 H0: (1- 2) = D = 0 and H1: (1- 2) = D > 0 With regards to the \"Asian Flu\" Case Study, say we are interested in testing if mean earnings per share for the fourth quarter of 1997 is different than the fourth quarter of 1996 at a significance level of 0.05. Based on the test results, the test statistic is described best by which random variable ? A T random variable with 14 degrees of freedom A T random variable with 13 degrees of freedom Normal Random Variable with a mean of 0.4892 and standard deviation of 0.5426 Normal Random Variable with a mean of 0.6135 and standard deviation of 0.3362 With regards to the \"Asian Flu\" Case Study, say we are interested in testing if mean earnings per share for the fourth quarter of 1997 is different than the fourth quarter of 1996 at a significance level of 0.05. Based on the test results, the value of the test statistic is 1.7709 1.4245 0.0889 2.1603 With regards to the \"Asian Flu\" Case Study, say we are interested in testing if mean earnings per share for the fourth quarter of 1997 is different than the fourth quarter of 1996 at a significance level of 0.05. Based on the test results, the appropriate critical value to be used is: 1.7709 1.4245 2.1603 0.1778 With regards to the \"Asian Flu\" Case Study, say we are interested in testing if mean earnings per share for the fourth quarter of 1997 is different than the fourth quarter of 1996 at a significance level of 0.05. Based on the test results, appropriate p-value to be used is: 0.0889 0.17784 1.4245 0.8246 With regards to the \"Asian Flu\" Case Study, say we are interested in testing if mean earnings per share for the fourth quarter of 1997 is different than the fourth quarter of 1996 at a significance level of 0.05. Based on the test results, the appropriate conclusion is that: Mean earnings per share for the fourth quarter of 1997 are greater than the fourth quarter of 1996 Mean earnings per share for the fourth quarter of 1997 are less than the fourth quarter of 1996. Mean earnings per share for the fourth quarter of 1997 are either less or more than the fourth quarter of 1996 Mean earnings per share for the fourth quarter of 1997 are same as the fourth quarter of 1996 The Paired Difference (Matched Pairs) Test for difference in two population means assumes that: Either the population parameter of interest is normally distributed or that the sample size is large. None of the alternatives are correct. The sample size is large. The population parameter of interest is normally distributed