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Suppose you are interested in buying shares of a stock. You compute the returns (%) on that stock using the stock prices available for the

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Suppose you are interested in buying shares of a stock. You compute the returns (%) on that stock using the stock prices available for the previous months to test whether th average return on this stock exceeds 5. We have n = 50, X = 8.25, 0 = 10.50 (Marks 12) 1. The distribution of returns is 2. The null hypothesis is Ho: 3. The alternative hypothesis is H : 4. The distribution of Xis because the Central Limit Theorem is 5. The test statistic in this case is because o is 6. The distribution of this test statistic under His 7. Observed value of the test statistic is 8. The decision rule is reject Ho if 9. Given the observed value of the test statistic, we decide to Suppose you are interested in buying shares of a stock. You compute the returns (%) on that stock using the stock prices available for the previous months to test whether th average return on this stock exceeds 5. We have n = 50, X = 8.25, 0 = 10.50 (Marks 12) 1. The distribution of returns is 2. The null hypothesis is Ho: 3. The alternative hypothesis is H : 4. The distribution of Xis because the Central Limit Theorem is 5. The test statistic in this case is because o is 6. The distribution of this test statistic under His 7. Observed value of the test statistic is 8. The decision rule is reject Ho if 9. Given the observed value of the test statistic, we decide to

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