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Suppose that an investor wants to compare the risks associated with two different stocks. One way to measure the risk of a given stock is
Suppose that an investor wants to compare the risks associated with two different stocks. One way to measure the risk of a given stock is to measure the variation in the stock's daily price changes. The investor obtains a random sample of 25 daily price changes for stock 1 and 25 daily price changes for stock 2. These data are provided below.
Perform this test, using a 10% significance level, and interpret the results. Round your answer for p-value to three decimal places, if necessary. Find the p-value?
STOCK 1
Day | Price Change |
1 | -0.65 |
2 | -0.13 |
3 | 0.87 |
4 | -0.41 |
5 | -0.58 |
6 | 1.91 |
7 | 1.81 |
8 | 0.99 |
9 | 0.23 |
10 | -0.80 |
11 | 0.94 |
12 | 0.09 |
13 | 0.26 |
14 | -0.34 |
15 | 0.56 |
16 | 1.22 |
17 | -1.22 |
18 | 0.43 |
19 | -0.53 |
20 | -0.07 |
21 | 1.14 |
22 | -0.81 |
23 | 0.48 |
24 | -0.25 |
25 | 0.78 |
STOCK 2
Day | Price Change |
1 | -0.18 |
2 | -0.39 |
3 | 1.04 |
4 | -0.65 |
5 | 0.21 |
6 | 0.82 |
7 | 1.41 |
8 | -0.23 |
9 | -0.15 |
10 | 0.20 |
11 | 0.09 |
12 | 0.07 |
13 | -0.75 |
14 | -0.38 |
15 | 0.10 |
16 | 0.46 |
17 | -0.19 |
18 | 0.78 |
19 | -0.16 |
20 | -0.63 |
21 | 0.25 |
22 | 0.66 |
23 | -0.52 |
24 | 0.55 |
25 | 0.03 |
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