A student is interested in whether students who study with others devote at much attention to their studies as do students who study alone. He believes those who study alone devote more attention to their studies. He randomly assigns participants to either group or individual study conditions and has them read and study the same passage of information for the same amount of time. Participants are then all given the same 10-item test on the material. Their scores appear below. Scores on the test represent interval/ratio data and are normally distributed.
a) What statistical test should be used to analyze these data?
b) Identify H0 and Ha for this study.
c) Conduct the appropriate analysis.
d) Should H0 be rejected? What should the researcher conclude?
e) If significant, compute the effect size and interpret this.
f) If significant, draw a graph representing the data.
g) Calculate the 95% CI.
Definitions:
Plowback Ratio
The proportion of earnings retained by a company rather than distributed to its shareholders as dividends.
P/E Multiple
Also known as Price-to-Earnings Ratio, it compares a company's share price to its per-share earnings, used to evaluate if a stock is over or undervalued.
EPS
EPS stands for Earnings Per Share, a financial ratio that measures the amount of a company's profit that is allocated to each individual share of its common stock.
Intrinsic Value
The actual, fundamental value of an asset, based on underlying perceptions of its true value including all aspects of the business.
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