0.85 Source: Based on B. Groysberg, P. Healy, and C. Chapman, “Buy-Side vs. Sell-Side Analysts’ Earnings Forecast,” Financial Analysts Journal, Vol. 64, No. 4, July/August 2008.

a. Conduct a test (at a = .01) to determine if the true mean forecast error for buy-side analysts is positive. Use the observed significance level (p-value) of the test to make your decision and state your conclusion in the words of the problem.

b. Conduct a test (at a = .01) to determine if the true mean forecast error for sell-side analysts is negative. Use the observed significance level (p-value) of the test to make your decision and state your conclusion in the words of the problem.