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Over a span of 10 years (120 months), you collect the following data on the monthly returns large and small cap stock indices: Large return
Over a span of 10 years (120 months), you collect the following data on the monthly returns large and small cap stock indices:
Large return (%) | Small return (%) | Difference (large - small) | |
Mean | 1.37 | 1.1 | 1.37 - 1.1 |
SD | 4.32 | 5.16 | 3.03 |
Calculate the test statistic for paired-observation test equality of the means of these two indices.
Bonus thinking question: can you reject the hypothesis that they are equal?
Enter answer accurate to three decimal places.
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