Math

StatisticsQ&A LibraryQ2. You collected 500 weeks of data (2500 days total). Based on that you find Tuesday's mean return is 12 bps. Mean return of all days is 2 bps. Stdev across all days is 100 bps. There is no noticeable difference b/w Tuesday stdev vs other weekdays' stdev.Q2d. Based on 95% CI, should you reject or accept that Tuesday's mean return is not different from other weekdays?Question

Asked Apr 8, 2019

10 views

Q2. You collected 500 weeks of data (2500 days total). Based on that you find Tuesday's mean return is 12 bps. Mean return of all days is 2 bps. Stdev across all days is 100 bps. There is no noticeable difference b/w Tuesday stdev vs other weekdays' stdev.

Q2d. Based on 95% CI, should you reject or accept that Tuesday's mean return is not different from other weekdays?

Q2d. Based on 95% CI, should you reject or accept that Tuesday's mean return is not different from other weekdays?

Step 1

There are total 500 weeks that is total 2,500 days. Therefore, total 500 Tuesdays are calculated. The mean return of Tuesdays is 12 bps. The sample standard deviation for all days is 100 bps.

Here, the population standard deviation is not known, but the sample sizes are very large, therefore, for finding the confidence interval for the mean difference between the Tuesday’s mean return and the all days’ mean return the z-confidence interval can be used.

Let μ_{1} be the true mean of Tuesday’s.

Let μ_{2} be the true mean of other week days’.

There are total 500 weeks. Therefore, total 500 Tuesdays are calculated.

The mean return of Tuesdays is 12 bps.

Hence, total return for all Tuesdays are,

Step 2

Mean return of all days is 2 bps. Total number of days is 2,500.

Hence, total return for all days are,

Step 3

Therefore, total return for all w...

Tagged in

Find answers to questions asked by student like you

Show more Q&A

Q: (c) Explain why four students coming in late would not necessarily form a random sample. (Select all...

A: (c)A random sample represents the whole population properly.It can happen that some students will be...

Q: A hospital reported that the normal death rate for patients with extensive burns (more than 40% of s...

A: (a) Level of significance:It is given that to test the claim that the mortality rate has dropped, l...

Q: 2. You are at Disney World and wait 45 minutes to ride the roller coaster at Space Mountain. Guests ...

A: The aim is to define the cycle time of the process and the throughput time.

Q: A population has a mean of 15 and standard deviation of 3. Round the answers to two decimal places a...

A: Let X be the observation. X follows normal distribution with mean μ = 15 and the standard deviation ...

Q: In a study of cell phone usage and brain hemispheric dominance, an Internet survey was e-mailed to 6...

A: The provided details:

Q: Guys, parts (b) and (c) in this solution that you have sent me twice is incorrect https://www.bartle...

A: X data transfer time, is gamma distribution with mean 37.5 and standard deviation 21.6. So, The valu...

Q: In a population of ages where the mean age is 45 and the standard deviation is 5.25, what are the ag...

A: Given mean age = 45Standard deviation = 5.25The Z score with 0.0505 to its left is -1.64 and the Z s...

Q: I need help understanding observational units, variables, how to formulate research questions.

A: Solution:Observational units:Observational units are the objects or entities on which information co...

Q: Which statement regarding correlation is true? A. The dependent variable is assigned to the Y axi...

A: Correlation coefficient - r:The Karl Pearson’s product-moment correlation coefficient or simply, the...