Are stock splits beneficial to stockholders? SNL Financial studied stock splits in the bank- ing industry over an 18-month period. For a sample of 20 stock splits, 14 led to an increase in investment value, 4 led to a decrease in investment value, and 2 resulted in no change. Conduct a sign test to determine if it can be concluded that stock splits are beneficial for holders of bank stocks. a. What are the null and alternative hypotheses? b. Using a = .05, what is your conclusion?

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Author:Amos Gilat
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Chapter1: Starting With Matlab
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Solve the non-parametric test problem
PROBLEM 1
Are stock splits beneficial to stockholders? SNL Financial studied stock splits in the bank-
ing industry over an 18-month period. For a sample of 20 stock splits, 14 led to an increase
in investment value, 4 led to a decrease in investment value, and 2 resulted in no change.
Conduct a sign test to determine if it can be concluded that stock splits are beneficial for
holders of bank stocks.
a. What are the null and alternative hypotheses?
b. Using a = .05, what is your conclusion?
Three admission test preparation programs are being evaluated. The scores obtained by a
sample of 20 people who used the programs provided the following data. Use the Kruskal-
Wallis test to determine whether there is a significant difference among the three test prepa-
ration programs. Use a = .05.
Program
A
B
540
400
490
530
490
610
450
600
630
580
490
590
620
570
540
400
410
480
370
550
Transcribed Image Text:PROBLEM 1 Are stock splits beneficial to stockholders? SNL Financial studied stock splits in the bank- ing industry over an 18-month period. For a sample of 20 stock splits, 14 led to an increase in investment value, 4 led to a decrease in investment value, and 2 resulted in no change. Conduct a sign test to determine if it can be concluded that stock splits are beneficial for holders of bank stocks. a. What are the null and alternative hypotheses? b. Using a = .05, what is your conclusion? Three admission test preparation programs are being evaluated. The scores obtained by a sample of 20 people who used the programs provided the following data. Use the Kruskal- Wallis test to determine whether there is a significant difference among the three test prepa- ration programs. Use a = .05. Program A B 540 400 490 530 490 610 450 600 630 580 490 590 620 570 540 400 410 480 370 550
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