Question
The null and alternate hypotheses are: H0: 1 = 2 H1: 1 2 A sample of 200 observations from the first population indicated that x1
The null and alternate hypotheses are:
H0: 1 = 2
H1: 1 2
A sample of 200 observations from the first population indicated that x1 is 170. A sample of 150 observations from the second population revealed x2 to be 110. Use the .05 significance level to test the hypothesis.
a. State the decision rule.
b. Compute the pooled proportion.
c. Compute the value of the test statistic.
d. What is your decision regarding the null hypothesis?
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An Introduction to the Mathematics of financial Derivatives
Authors: Salih N. Neftci
2nd Edition
978-0125153928, 9780080478647, 125153929, 978-0123846822
