THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 32

Essay

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
From the top 1000 companies in valuation,a comparison of the mean dividend yield of the top and bottom ten electric utility companies is desired.Let 1 = top ten,and 2 = bottom ten,electric utility companies respectively.The data shown below are for two independent samples,which are drawn at random from populations that are normally distributed.

-Using results of Excel or Minitab to conduct a two-sample t-test for data in the table above,test
H₀ : μ₁ - μ₂ = 0 vs.H₁ : μ₁ - μ₂ ≠ 0 at the 5% significance level.What is your conclusion?

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Definitions:

Test Power

The probability that a statistical test will correctly reject the null hypothesis when it is false, indicating a test's effectiveness.

False Null Hypothesis

Incorrect rejection of a true null hypothesis, often referred to as a Type I error in statistical hypothesis testing.

Confidence Interval

An encompassing array of values, from sample data statistics, perceived to contain the unknown value of a population parameter.

Population Mean

The average of all the values in a population, representing the central tendency.