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courses.aplia.com udent Question Chegg Study I Guided Solutions and Stupy Home Grades Personalized Reviews Discussion Course Materials ntroduction to Hypothesis Testing raded Assignment Read Chapter 8 Back to Assignment Due Sunday 12.17.17 at 11:45 PM Average: IS Attempts: 2. The logic of hypothesis testing A finance professor conducts a statistical study to test her hunch that the mean return on common-stock portfolios is AaAa different with an active trading strategy than with a more passive buy-and-hold strategy The professor should use a hypothesis test because she: O Does not know and probably cannot calculate the mean for the entire population O Knows or can calculate the population mean, but she still should compare it to a sample mean Suppose the professor collects a random sample and decides to conduct a hypothesis test. Formulate the null and alternative hypotheses. For each statement in the following table, click the correct radio button to indicate whether the statement is the null hypothesis, the alternative hypothesis, or neither. (Hint: This is a nondirectional hypothesis test.) Null Alternative The mean return on common-stock portfolios is the same with a trading strategy as with a buy-and-hold strategy The mean return on common-stock portfolios is lower with a trading strategy than with a buy-and-hold strategy The mean return on common-stock portfolos is different with a trading strategy than with a buy-and-hold strategy The mean return on common-stock portfolios is higher with a trading strategy than with a buy-and-hold strategy 13 WE PExplanation / Answer
1) The professor uses a hypothesis test because she knows or
can calculate the population mean but she wants to compare
it with the sample mean. (Ans).
2) The first statement is null hypothesis. (Ans).
The second statement is alternative hypothesis (left-tailed).
(Ans).
The third statement is alternative hypothesis (two-tailed).
(Ans).
The fourth statement is alternative hypothesis (right-tailed).
(Ans).
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