Question 1 (20 points):

In research whose objective is to compare access to financing for innovative versus non-innovative SMEs and to demonstrate that accepted applications are identical, the following data were obtained regarding the acceptance of short-term financing applications (line of credit) by innovative and non-innovative SMEs.

Acceptance of short-term financing requests

Innovative Non-innovative

346

328

310

280

Innovation is the integration of new ideas into commercially feasible products (goods and services) and processes or the adoption by a company of new technologies for its industry.

a) Are the conditions of the test met? Explain.

b) Specify the statistical hypotheses to be tested.

c) What is the appropriate statistic for this hypothesis test (Z, t, x?, F)?

d) What is the expression for the reduced variance (formula) to be used? What is the value of the reduced deviation?