Question:Q. 1.Your data indicates that the stock market indices of all the countries studied increased between 2005 and 2006.Unexpectedly, interest rates for all but one country also increased during that period.Perhaps this is partially due to the positive inflation rates in all of these countries.You would like to find out more information.However, there are variations in the direction and in the size of these changes for each country and this complicates your analysis.

b.Conduct a hypothesis test to see if the mean percent change in stock market indices between 2005 and 2006 is significantly different from zero.Do this without Excel.Conduct the same test for the mean percent change in interest rates.Use a significance of .05.How do you interpret your findings?

A P. U | IL; | L;- | I: | r | 43 I I1 I .I 1 Selected Economic Statistics for 2005 and 21105 by Counter 2 211115 2306 2335 EM Z 2306 2306 'IIIEhange 'IIIEhange Market Market Interest Interest Per Capita Ination Unemploy- in Market in Interest 3 Count. Index\"r Index Ratesm Rates GNI 1l}l}l}s 5 Rate ment Rate Indicesgr Rates4 4 __ 5 6 Canada 359. 4 425. T 2. T3 4. [13 3B. 65 2. El SI 3 15. 24 4TI B2 7 -----_-- 8 German 224. 3 3U2I 8 2. U3 3. [18 3EI 81 1. T 35I [Ill] 51. T2 9 _ 10 -E_1 110.2___ '2 - 13 Mexico 3331 531. 3 323 rI13 rI 33 3 3 3313 21. 35 '4 - 15 Sintanre 1233 2434 234 233 23 r3 1.4 41I43 44Ie1 15 _ 1T _ 18 _ 2? 65 91 55 19 Thailand TEII T 81. 3 2. E2 4. 54 3I [15 4. 5 NA 5. [JD TT.1U 20 United Kin 3m 21T. E- 2T8. 3 4. 55 4. 65 4D. 56- 3. 2 5. 3 2T. 90 2. 2D 21 United States 302. 4 343. 2 3.15 4. T2 44. T1 13. 43 49. 84 22 Mean=5 9119 23\" Source: U.S. Census Bureau and United Nations STDE'IT= 14.15 244.56 24 " Dowdones World Stock Index 25 m Treasury Bill Rates, if NA Money Market Rates Used