SOLUTION: The following data on annual rates of return were collected from five stocks listed on the New York Stock Exchange (“the big board”) and five stocks listed on NASDAQ. At the .10 si

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Question 397287: The following data on annual rates of return were collected from five stocks listed on the New York Stock Exchange (“the big board”) and five stocks listed on NASDAQ. At the .10 significance level, can we conclude that the annual rates of return are higher on the big board?
NYSE Nasdaq
17.16 15.80
17.08 16.28
15.51 16.21
8.43 17.97
25.15 7.77

Answer by stanbon(75887)   (Show Source): You can put this solution on YOUR website!
The following data on annual rates of return were collected from five stocks listed on the New York Stock Exchange (“the big board”) and five stocks listed on NASDAQ. At the .10 significance level, can we conclude that the annual rates of return are higher on the big board?
NYSE Nasdaq
17.16 15.80
17.08 16.28
15.51 16.21
8.43 17.97
25.15 7.77
----
Ho: uNY-uN = 0
Ha: uNY-uN > 0 (claim)
---
I ran a 2-sample t-test and got the following:
test stat: t = 0.5797
p-value: 0.2901
df = 7,024
Conclusion: since the p-value is greater than 5% fail to reject Ho.
The test results do not support Ha.
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Cheers,
Stan H.

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