Many people believe that there is a "Friday effect" in the stock market. They do not necessarily spell out exactly what they mean by this, but there is a sense that the stock prices tend to be lower on Fridays than on Mondays.

Questions:

Because stock prices are readily available on the web, it should be easy to test this hypothesis empirically.

1. Before collecting data and running test, however, you must decide exactly which hypotheses you want to test because there are several possibilities. Formulate two sets of null/alternative hypotheses: a two-tail test of hypothesis to determine if the prices are different on Fridays versus Mondays and a one-tail test of hypothesis to determine whether Friday prices are lower than Monday prices .
2. Decide on criteria to support or refute your hypothesis. Specify significance level (0.01, 0.05, 0.1).
3. Collect a year's worth of data points (52 Fridays and the following Mondays) from the stock market and perform the 2 Sample T - test analysis.
4. What are the p-values for the two sets of test of hypotheses?State whether the null hypotheses are rejected or not for each test.
5. Can you conclude that there is a statistically significant Friday effect in the stock market based on the two sets of tests of hypothesis conducted?Explain in detail.