Part - 1

A study analyzed the trading skills of investors. The study focused on "round-trip" trades, that is, trades in which the same stock was both bought and sold in the same quarter. Consider a random sample of 189 round-trip trades made by investors. Suppose the sample mean rate of return is 2.55% and the sample standard deviation is 9.64%. If the true mean rate of return of round-trip trades is positive, then the population of investors is considered to have performed successfully. Complete parts a through e below. a. Specify the null and alternative hypotheses for determining whether the population of investors performed successfully. OA. Ho: p#0 OB. Ho: H=0 Ha : H=0 Ha : H > 0 O C. Ho: H=0 OD. Ho: H=0 Ha : p#0 b. Find the rejection region for the test using a = 0.05. O A. z > 1.645 O B. Z 1.96 O D. Z> 1.645 or z 1.96 or z 0 95% Lower N Mean StDev SE Mean Bound Z P 189 2.550 9. 640 0. 701 1. 176 3. 64 0.000 test statistic = p-value = (Type integers or decimals.) e. Give the appropriate conclusion in the words of the problem. O A. Reject Ho. There is sufficient evidence at the a= 0.05 level of significance to conclude that the true mean rate of return of round-trip trades is positive. O B. Do not reject Ho. There is sufficient evidence at the a= 0.05 level of significance to conclude that the true mean rate of return of round-trip trades is positive. O C. Do not reject Ho. There is insufficient evidence at the a = 0.05 level of significance to conclude that the true mean rate of return of round-trip trades is positive. O D. Reject Ho. There is insufficient evidence at the a = 0.05 level of significance to conclude that the true mean rate of return of round-trip trades is positive