The following 8 questions are based on this information.

The table below shows the annual return data for 10 firms in the gold industry and 10 firms in the oil industry. Here we assume that these two samples are from tow normal populations.

Annual returns (in percent)

Gold Oil

6 -3

15 15

19 28

26 18

2 32

16 31

31 15

14 12

15 10

16 15

Let (1) be the mean return for the gold industry and (2) be the mean return for the oil industry. We wish to test if the average returns in the two industries are different?Here we assume that these two samples are from two independent normal populations.

QUESTION 6The competing hypotheses should be formulated as

Select one:

a. H(0): (1)-(2)0 versus H(a):(1)-(2)=0

b. H(0): (1)-(2)=0 versus H(a):(1)-(2)0

c. H(0): (1)-(2)<0 versus H(a):(1)-(2)0

Question 7

The test statistics value is

Select one:

a. -0.3023

b. 0

c. 16

d. 17.3

Question 8

The p-value of the test is

Select one:

a. 0.3830

b. 0.7661

c. 1.7396

d. 2.1098

Question 9

At =0.1,

Select one:

a. We can reject H(0) in favor of H(a)

b. We cannot reject H(0)

c. We can conclude that average return for gold industry is less than the average return for the oil industry

Question 10

What is the standard error of (x(1)bar- x(2)bar?

Select one:

a. 4.30

b. 3.32

c. 16

d. 17.3

Question 11

Suppose you would like to construct the 90% confidence interval for (1)-(2). The critical value, t(/2) is

Select one:

a. 2.11

b. 1.96

c. 1.64

d. 1.74

Question 12

The 90% confidence interval for (1)-(2) is

Select one:

a. -1.3 6.44

b. -1.3 5.78

c. -1.3 7.48

d. -1.39.07

Question 13

Using the 90% confidence interval estimate, we do not reject H_0 because

Select one:

a. 1 is included in the interval

b. -1 is included in the interval

c. 2 is included in the interval

d. 0 is included in the interval