As part of an economics class project, students were asked to randomly select 500 New York Stock Exchange (NYSE) stocks from the
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Answer:
The first step is calculate the degrees of freedom, on this case:
Since is a one side left tailed test the p value would be:
And we can use the following excel code to find it: "=T.DIST(-0.024,20,TRUE)"
Step-by-step explanation:
Data given and notation
represent the mean
represent the sample standard deviation
sample size
represent the value that we want to test
represent the significance level for the hypothesis test.
t=-0.024 would represent the statistic (variable of interest)
represent the p value for the test (variable of interest)
State the null and alternative hypotheses.
We need to conduct a hypothesis in order to check if the mean for the widths of tornadoes is lower than 140 yd, the system of hypothesis would be:
Null hypothesis:
Alternative hypothesis:
If we analyze the size for the sample is < 30 and we don't know the population deviation so is better apply a t test to compare the actual mean to the reference value, and the statistic is given by:
(1)
t-test: "Is used to compare group means. Is one of the most common tests and is used to determine if the mean is (higher, less or not equal) to an specified value".
Calculate the statistic
The statistic is given by:
P-value
The first step is calculate the degrees of freedom, on this case:
Since is a one side left tailed test the p value would be:
And we can use the following excel code to find it: "=T.DIST(-0.024,20,TRUE)"
Based on the p value obtained we can conclude that we FAIL to reject the null hypothesis at any significance level selected