Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Using significance level = 0.05 and an appropriate confidence interval, test if a 0.1 increase in 2019 log return is associated with less than a
Using significance level = 0.05 and an appropriate confidence interval, test if a 0.1 increase in 2019 log return is associated with less than a 0.075 increase in average 2020 log return. Write down the hypotheses, the test statistic, the test decision, and conclusion Actual data:
index | log_return_2019 | log_return_2020 | marketCap |
CAC40 | 0.0658298 | 0.02685495 | 75400000000.00 |
CAC40 | 0.191471509 | -0.162364339 | 91300000000.00 |
CAC40 | 0.078215611 | 0.042858032 | 10100000000.00 |
CAC40 | 0.124351096 | -0.109544955 | 65000000000.00 |
CAC40 | 0.126558504 | -0.088352981 | 79400000000.00 |
CAC40 | 0.082310988 | -0.051424894 | 11800000000.00 |
CAC40 | 0.098508145 | 0.066091378 | 31800000000.00 |
CAC40 | 0.001163548 | -0.027583524 | 12000000000.00 |
CAC40 | 0.136918851 | -0.097750874 | 35100000000.00 |
CAC40 | 0.079698732 | -0.138185201 | 32400000000.00 |
CAC40 | 0.150207063 | 0.054514525 | 49800000000.00 |
CAC40 | 0.060584759 | -0.060758136 | 32000000000.00 |
CAC40 | 0.089734071 | -0.027219306 | 76100000000.00 |
CAC40 | 0.180685145 | 0.142611257 | 13000000000.00 |
CAC40 | 0.138042036 | 0.120680572 | 179000000000.00 |
CAC40 | 0.152828954 | 0.006774492 | 69000000000.00 |
CAC40 | 0.117975957 | 0.070877066 | 208000000000.00 |
CAC40 | 0.168328919 | 0.002147028 | 23200000000.00 |
CAC40 | 0.205253849 | 0.09112579 | 406000000000.00 |
CAC40 | 0.099805662 | -0.016842314 | 21000000000.00 |
CAC40 | -0.032976034 | -0.12964248 | 26400000000.00 |
CAC40 | 0.046242101 | -0.007142234 | 48100000000.00 |
CAC40 | -0.093713172 | 0.004282993 | 18800000000.00 |
CAC40 | -0.11168817 | -0.071709089 | 12300000000.00 |
CAC40 | 0.115935579 | -0.074505455 | 55400000000.00 |
CAC40 | 0.09743087 | 0.011738403 | 27000000000.00 |
CAC40 | 0.073538595 | -0.056430237 | 110000000000.00 |
CAC40 | 0.185301286 | 0.111563662 | 84400000000.00 |
CAC40 | 0.047214656 | -0.260561207 | 22000000000.00 |
CAC40 | 0.283279487 | 0.101487859 | 41400000000.00 |
CAC40 | 0.19237409 | 0.096190247 | 15200000000.00 |
CAC40 | -0.042364563 | -0.091753782 | 27000000000.00 |
CAC40 | 0.027511178 | -0.144190414 | 151000000000.00 |
CAC40 | 0.12074613 | -0.073684444 | 19300000000.00 |
CAC40 | 0.138182098 | -0.085224251 | 60700000000.00 |
CAC40 | 0.083984595 | 0.009318545 | 9950000000.00 |
CAC40 | 0.175060907 | 0.09780311 | 11400000000.00 |
DJIA | -0.033438332 | -0.004031248 | 63400000000.00 |
DJIA | 0.115950427 | -0.012672225 | 135000000000.00 |
DJIA | 0.092844156 | -0.020566434 | 128000000000.00 |
DJIA | 0.269888145 | 0.257068197 | 2480000000000.00 |
DJIA | 0.00436805 | -0.182362253 | 130000000000.00 |
DJIA | 0.065278633 | 0.090797458 | 129000000000.00 |
DJIA | 0.044434114 | -0.154423456 | 327000000000.00 |
DJIA | 0.044090459 | -0.030086126 | 199000000000.00 |
DJIA | 0.067797644 | -0.004020166 | 258000000000.00 |
DJIA | 0.120249759 | 0.097851837 | 195000000000.00 |
DJIA | 0.138749138 | 0.059530959 | 127000000000.00 |
DJIA | 0.104139138 | 0.085047893 | 327000000000.00 |
DJIA | 0.127004717 | 0.079794217 | 136000000000.00 |
DJIA | 0.071585913 | -0.027277221 | 123000000000.00 |
DJIA | 0.105613587 | -0.079660423 | 119000000000.00 |
DJIA | 0.053207949 | 0.032983586 | 417000000000.00 |
DJIA | 0.154723939 | -0.040219726 | 422000000000.00 |
DJIA | 0.046439307 | 0.035780325 | 195000000000.00 |
DJIA | 0.075652662 | -0.046049602 | 273000000000.00 |
DJIA | 0.191066234 | 0.149342148 | 2010000000000.00 |
DJIA | 0.135599727 | 0.145012052 | 199000000000.00 |
DJIA | 0.133152437 | 0.046889553 | 329000000000.00 |
DJIA | 0.074601904 | 0.136161202 | 171000000000.00 |
DJIA | 0.058286505 | 0.010712258 | 43400000000.00 |
DJIA | 0.071909215 | 0.076593187 | 459000000000.00 |
DJIA | 0.038277531 | -0.019160511 | 170000000000.00 |
DJIA | 0.153550278 | 0.065981578 | 474000000000.00 |
DJIA | -0.064053964 | -0.169802307 | 31600000000.00 |
DJIA | 0.105779763 | 0.083851999 | 396000000000.00 |
FTSE | 0.152198143 | 0.023106235 | 16300000000.00 |
FTSE | 0.106495745 | -0.06683649 | 4730000000.00 |
FTSE | 0.052306108 | 0.099871666 | 6660000000.00 |
FTSE | 0.094567966 | 0.047562486 | 43100000000.00 |
FTSE | 0.068401949 | 0.196238639 | 16800000000.00 |
FTSE | 0.168688553 | 0.153568631 | 25100000000.00 |
FTSE | 0.104370766 | -0.059762728 | 15200000000.00 |
FTSE | 0.112353417 | -0.016465092 | 179000000000.00 |
FTSE | 0.11640447 | 0.00102135 | 5770000000.00 |
FTSE | 0.047292985 | -0.109752391 | 12500000000.00 |
FTSE | 0.162881561 | 0.100458047 | 4880000000.00 |
FTSE | 0.08989279 | -0.062763472 | 27700000000.00 |
FTSE | 0.076808817 | -0.088032141 | 27400000000.00 |
FTSE | 0.20769466 | -0.0470132 | 4790000000.00 |
FTSE | 0.043075325 | -0.183258134 | 4070000000.00 |
FTSE | 0.14509246 | -0.010585368 | 4620000000.00 |
FTSE | -0.021864076 | -0.267374364 | 109000000000.00 |
FTSE | 0.111464133 | -0.076755483 | 71100000000.00 |
FTSE | 0.078474786 | -0.116056061 | 4140000000.00 |
FTSE | -0.059645023 | 0.073003424 | 10400000000.00 |
FTSE | 0.103983972 | -0.090676865 | 9790000000.00 |
FTSE | -0.17916048 | -0.282465554 | 5820000000.00 |
FTSE | 0.019566889 | -0.033058173 | 7640000000.00 |
FTSE | 0.058977851 | -0.141965936 | 33600000000.00 |
FTSE | 0.154792556 | 0.001638216 | 4790000000.00 |
FTSE | 0.166979131 | 0.002278269 | 30200000000.00 |
FTSE | 0.038560386 | 0.110010673 | 9640000000.00 |
FTSE | 0.038779163 | -0.101681271 | 4580000000.00 |
FTSE | 0.058836022 | -0.046127046 | 80900000000.00 |
FTSE | 0.117890629 | 0.107871015 | 8060000000.00 |
FTSE | 0.126985715 | 0.036695209 | 27600000000.00 |
FTSE | 0.15873931 | 0.214345198 | 23000000000.00 |
FTSE | 0.285222193 | -0.006872498 | 3720000000.00 |
FTSE | -0.128182804 | 0.246570572 | 5810000000.00 |
FTSE | -0.092700851 | -0.004358275 | 66600000000.00 |
FTSE | 0.076640052 | -0.122423427 | 59300000000.00 |
FTSE | 0.190701279 | 0.063473121 | 8460000000.00 |
FTSE | 0.019744072 | -0.103411134 | 4190000000.00 |
FTSE | -0.056273008 | -0.156123616 | 3910000000.00 |
FTSE | -0.038588791 | -0.193781051 | 122000000000.00 |
FTSE | 0.089612538 | -0.045498134 | 10400000000.00 |
FTSE | -0.104419876 | -0.085359506 | 21000000000.00 |
FTSE | 0.133502404 | -0.19340848 | 9800000000.00 |
FTSE | 0.004891554 | -0.592303229 | 8320000000.00 |
FTSE | 0.086063083 | -0.015409636 | 7270000000.00 |
FTSE | 0.380356486 | 0.011565492 | 9390000000.00 |
FTSE | 0.029538901 | -0.091830053 | 4130000000.00 |
FTSE | 0.019441638 | 0.095546938 | 5790000000.00 |
FTSE | 0.090163134 | -0.167104177 | 5180000000.00 |
FTSE | 0.117830655 | -0.056234583 | 15400000000.00 |
FTSE | 0.081131281 | -0.23430165 | 36100000000.00 |
FTSE | 0.280561795 | 0.065326684 | 43100000000.00 |
FTSE | 0.165945725 | -0.129850173 | 6180000000.00 |
FTSE | 0.035467139 | -0.013184081 | 7220000000.00 |
FTSE | 0.091902938 | -0.038093894 | 38700000000.00 |
FTSE | 0.044895964 | -0.15635125 | 29000000000.00 |
FTSE | 0.24513164 | 0.004187786 | 8800000000.00 |
FTSE | 0.209243447 | 0.252395637 | 4700000000.00 |
FTSE | -0.168248566 | 0.028624874 | 6800000000.00 |
FTSE | 0.14500149 | 0.011450379 | 4630000000.00 |
FTSE | 0.014320351 | -0.031700774 | 35900000000.00 |
FTSE | 0.008298416 | 0.0283209 | 41300000000.00 |
FTSE | 0.071433227 | -0.026549814 | 46900000000.00 |
FTSE | 0.128210659 | 0.051131214 | 9370000000.00 |
FTSE | 0.166080141 | 0.011632371 | 4950000000.00 |
FTSE | 0.081793112 | 0.084485397 | 97900000000.00 |
FTSE | -0.084530259 | -0.788247843 | 9370000000.00 |
FTSE | 0.095318385 | -0.109558807 | 8360000000.00 |
FTSE | -0.061706914 | -0.008392408 | 6220000000.00 |
FTSE | 0.135042125 | 0.000390595 | 6650000000.00 |
FTSE | 0.183069002 | 0.023735774 | 10000000000.00 |
FTSE | 0.141541713 | -0.040892202 | 7020000000.00 |
FTSE | -0.013864189 | -0.236069776 | 185000000000.00 |
FTSE | 0.10845064 | -0.010989582 | 4810000000.00 |
FTSE | 0.092300723 | -0.04972291 | 6500000000.00 |
FTSE | 0.097502914 | -0.084067043 | 10100000000.00 |
FTSE | 0.153717168 | 0.103984455 | 8920000000.00 |
FTSE | 0.123883366 | 0.018181386 | 18900000000.00 |
FTSE | 0.067892742 | -0.184431212 | 21200000000.00 |
FTSE | 0.091167535 | -0.011717984 | 6860000000.00 |
FTSE | 0.152119977 | -0.066871949 | 4260000000.00 |
FTSE | 0.127898556 | -0.042517344 | 18700000000.00 |
FTSE | 0.024855902 | 0.00412313 | 109000000000.00 |
FTSE | 0.10770006 | -0.022872847 | 7170000000.00 |
FTSE | 0.194035494 | -0.081254276 | 4000000000.00 |
FTSE | -0.017799798 | -0.084037715 | 27500000000.00 |
FTSE | 0.065558448 | 0.119910828 | 4870000000.00 |
FTSE | 0.024612749 | -0.194021708 | 6350000000.00 |
FTSE | 0.100282614 | -0.124870871 | 11000000000.00 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started