T-test A t-test is a hypothesis test in which the test statistic follows a Student’s t-distribution under the null hypothesis. There are several different test statistics that fall into the category of a t-test. One-Sample t-test x 0 s n df n 1 t Independent Two-Sample t-test t x1 x2 2 sx1x2 n 1 2 2 sx1 sx2 2 df 2n 2 sx1x2 Unequal Sample Size Two-Sample t-test t x1 x2 1 1 sx1x2 n1 n2 sx1x2 n1 1 sx2 n2
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Hypothesis Testing: Two-Sample Case for the Mean Many cases in the social sciences involve a hypothesis about the difference between two groups (i.e. men and women‚ control and experiment). We analyze statistics from two samples‚ and the hypothesis and confidence interval would deal with the difference between two population means. The following factors are important in hypothesis testing: 1. probability theory 2. the sampling distribution of the statistic 3. the errors inherent
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Efficient Market Hypothesis THE CONTRASTING EVIDENCE OF THE VALIDITY OF THE EFFICIENT MARKET HYPOTHESIS There is apparently plenty of divergence relating to the validity of efficient market hypothesis (EMH)‚ some academics or financial gurus support efficient market hypothesis while there are some who assert that efficient market hypothesis and random walk theory are flawed concepts in the post-financial crisis era. Beginning with the definition of efficient market hypothesis‚ it states that
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A REVIEW OF STUDIES CONDUCTED ON THE WEAK FORM OF THE EFFICIENT MARKET HYPOTHESIS ON EMERGING CAPITAL MARKETS Surabhi Kothiyal (2009B3A8360P) Vishnukaant Pitty (2009A4PS340P) 1 CONTENTS PAGE NO. 1. Introduction 3 2. On Emerging Markets … 5 3. Empirical Methods 8 3.1. Non-Parametric Tests 8 3.1.1. Kolmogrov Smirnov Goodness of Fit Test 9 3.1.2. Runs Test 9 3.2. Parametric Tests 10 3.2.1. Auto-Correlation Test 10 3.2.2. ADF (Augmented
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Business Statistics‚ 9e (Groebner/Shannon/Fry) Chapter 10 Estimation and Hypothesis Testing for Two Population Parameters 1) The Cranston Hardware Company is interested in estimating the difference in the mean purchase for men customers versus women customers. It wishes to estimate this difference using a 95 percent confidence level. If the sample size is n = 10 from each population‚ the samples are independent‚ and sample standard deviations are used‚ and the variances are assumed equal‚ then
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is extensively used and highly useful for the purpose of cash management. As per the model‚ cash and inventory management problems are one and the same. William J. Baumol developed a model (The transactions Demand for Cash: An Inventory Theoretic Approach) which is usually used in Inventory management & cash management. Baumol model of cash management trades off between opportunity cost or carrying cost or holding cost & the transaction cost. As such firm attempts to minimize the sum of the
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Managerial Economics August 15‚ 2007 The key points underpinning the economics of a profit maximizing firm Neoclassical model of the firm states that organization will have the main objective of maximizing its profit within a given period of time. Maximum profit was achieved at the output at which marginal cost is equal marginal revenue. There are several factors which need to be considered when talking about the profit maximizing firm: 1. The assumption of the profit maximizing firm is that
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The word ‘Hypothesis is derived from a Greek word‚ which means ‘to suppose’. It is usually considered as the principal instrument in research. For a researcher it is a formal question that he or she intends to resolve. In this way a hypothesis may be defined as a proposition or a supposition. The main function of hypothesis is to guide the collection and processing of materials and direct the research. Hypothesis is a tentative conclusion. It is facts based theory. A research scholar will analyze
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1. First enter the Real estate data (text book data set 1) into SPSS and then select a sample of size‚ n = last two digits of your ID and answer the exercises. I. Select an appropriate class interval and organize the “Selling price” into a frequency distribution. II. Compute the Mean‚ Median‚ Mode‚ Standard Deviation‚ Variance‚ Quartiles‚ 9th Decile‚ 10th Percentile and Range of “Selling price” from the raw data of your sample and interpret. III. Develop a histogram (Using question “1”) for
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TAMILNADU A.KASIRAJAN(Asst.Prof) WITH REFERANCE TO PERMANENT INCOME Department of Economics HYPOTHESIS R.K.M.VivekanandaCollege‚ Mylapore‚Chennai600004. _______________________________________________________________________________ Introduction The central idea of the permanent income hypothesis‚ proposed by Milton Friedman in 1957‚ is that people base consumption on what they consider their “normal income”. In doing this‚ they
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