Question

1. Create the printout for testing whether the mean low stock price of all NYSE stocks differs from $35 and attach it here. Answer the following questions regarding this printout:

Student Edition of Statistix 10.0                          4/21/2020, 6:14:29 AM One-Sample T Test Null Hypothesis: μ = 35 Alternative Hyp: μ ≠ 35                                                                                Lower    Upper Variable Mean       SE        T       DF             P      95% C.I. 95% C.I. Low      37.227   8.1489   0.27      39         0.7861   20.744 53.710 Cases Included 40    Missing Cases 0

1. In the words of the problem, give a practical conclusion for this test. Make sure to include your choice of α in this conclusion.
2. In the words of the problem, state what a Type I error would be.
3. Use your knowledge of p-values and the printout above to state what the p-value would have been if you were conducting a one-tailed test instead of the two-tailed test I asked for.

Answer 1

a)

p value = 0.7861

p value >0.05,so do not reject Ho

so, mean low stock price of all NYSE stocks does not differs from $35

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b)

type II error is here

a type II error is the non-rejection of a false null hypothesis

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c)

p value will be half

so, p value fpor one tail = 0.3930

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Please revert back in case of any doubt.

Please upvote. Thanks in advance.