Use the Following Sample Data to Answer the Next Questions

question 4

Essay

Use the following sample data to answer the next questions. Tracking
misdiagnoses by Emergency Room doctors, a sample of 200 patients revealed that
45 patients were misdiagnosed with indigestion instead of a heart attack. Use the
Sign test with a .05 significance level to test the claim that physicians correctly
diagnose a majority of heart attacks.
-State a conclusion about the null hypothesis and a final conclusion that addresses the original claim.

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Definitions:

Forward Rates

Forward rates are interest rates or foreign exchange rates fixed now for a financial transaction that will occur at a future date.

Spot Rates

Spot Rates refer to the current interest rates available for immediate transactions in the bond market, influencing the pricing of the financial securities.

Interest Rate Parity

A financial theory stating that the difference in interest rates between two countries is equal to the difference between the forward and spot exchange rates of their currencies.

Nominal Risk-Free

The rate of return on an investment with no risk of financial loss, not adjusted for inflation.