The analyst tells you that the returns on its shares in company XYZ have no systematic risk, in other words that the returns on its shares are completely unrelated to movements in the market. The value of beta and its standard error are calculated to be 0.428 and 0.372, respectively. The model is estimated over 76 observations. Write down the null and alternative hypothesis

The analyst tells you that the returns on its shares in company XYZ have no systematic risk, in other words that the returns on its shares are completely unrelated to movements in the market. The value of beta and its standard error are calculated to be 0.428 and 0.372, respectively. The model is estimated over 76 observations. Write down the null and alternative hypothesis

A First Course in Probability (10th Edition)

10th Edition

ISBN:9780134753119

Author:Sheldon Ross

Publisher:Sheldon Ross

Chapter1: Combinatorial Analysis

Section: Chapter Questions

Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...

See similar textbooks

Similar questions

In one of the hypothesis study, Robin considers to increase the alpha level. Briefly explain the effect on the Type I and Type II errors together with the probability weather he should reject the null hypothesis.
Consider the following: In general, when people diet they typically lose 10 lbs. (?σ = 2). A random sample of 16 people on the keto diet lost 15 lbs. Do people on the keto diet lose more or less weight than people on diets in general? 3. What is the Null Hypothesis? a)On average, weight loss in the keto diet sample does not differ from weight loss in the population of dieters in general. (H0: X-bar = Mu)) b)On average, weight loss in the keto diet sample does not differ from weight loss in the population of dieters in general. (H0: X-bar does not equal Mu) c)On average, weight loss in the keto diet sample differs from weight loss in the population of dieters in general. (H0: X-bar does not equal Mu) d)On average, weight loss in the keto diet sample differs from weight loss in the population of dieters in general. (H0: X-bar = Mu)
If I am conducting a one-tailed z test and my risk is 1% what should my critical value be?
Analyze the residuals from this experiment and comment on model adequacy. above
A hospital claims that the mean wait time for emergency room patients is more than 38 minutes. Identify the null hypothesis Ho, and the alternate hypothesis Ha in terms of the parameter
If I have a sample of 20 people what is my T-threshold for a two-tail test and an alpha of 0.1 percent?
The records of a casualty insurance company show that, in the past, its clients have had a mean of 1.7 auto accidents per day with a variance of 0.0036. The actuaries of the company claim that the variance of the number of accidents per day is no longer equal to 0.0036. Suppose that we want to carry out a hypothesis test to see if there is support for the actuaries' claim. State the null hypothesis H0 and the alternative hypothesis H1 that we would use for this test. H0 : __? H1 : __?
The records of a casualty insurance company show that, in the past, its clients have had a mean of 1.7 auto accidents per day with a variance of 0.0025. The actuaries of the company claim that the variance of the number of accidents per day is no longer equal to 0.0025. Suppose that we want to carry out a hypothesis test to see if there is support for the actuaries' claim. State the null hypothesis H and the alternative hypothesis H, that we would use for this test. H0:__H 1:__
An auto manufacturer claims that the variance of the gas mileage in a model of a hybrid vehicle is 0.16. A random sample of 30 vehicles has a variance of 0.26. At alpha = 0.05, is there enough evidence to reject the claim? Assume the population is normally distributed.