Preliminary Data Analyses Indicates That Use of a Paired T-Test $\mathrm { H } _ { 0 } : \mu _ { 1 } = \mu _ { 2 }$

question 74

Essay

Preliminary data analyses indicates that use of a paired t-test is reasonable. Perform the hypothesis test by using eitherthe critical-value approach or the P-value approach as indicated. Assume that the null hypothesis is $\mathrm { H } _ { 0 } : \mu _ { 1 } = \mu _ { 2 }$
-A coach uses a new technique in training middle distance runners. The times, in seconds, for 8 different athletes to run 800 meters before and after this training are shown below. $$\begin{array} { r | r r r r r r r r } \text { Athlete } & \text { A } & \text { B } & \text { C } & \text { D } & \text { E } & \text { F } & \text { G } & \text { H } \\ \hline \text { Before } & 117.6 & 110.6 & 109.5 & 112 & 117.6 & 116.8 & 111.3 & 111.8 \\ \hline \text { After } & 118.2 & 109.3 & 107.1 & 112.8 & 115.8 & 116.9 & 107.7 & 107.9 \end{array}$$ At the 5% significance level, do the data provide sufficient evidence that the training helps to improve times for the 800 meters? Use the P-value approach.

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Definitions:

Equity Financed

The method of funding a business through selling shares of the company to investors, thus raising capital without incurring debt.

Cost of Equity

The return a company requires to decide if an investment meets capital return requirements, often used in calculating the weighted average cost of capital.

Cost of Debt

The effective rate that a company pays on its current debt, incorporating both interest payments and issuance costs.

All Equity Firm

A company that is financed solely through equity without the use of debt or leverage, relying entirely on shareholder funds.