
The following data on annual rates of return were collected from eleven randomly selected stocks listed on the New York Stock Exchange (“the big board”) and twelve randomly selected stocks listed on NASDAQ. Assume the population standard deviations are the same. At the 0.10 significance level, can we conclude that the annual rates of return are higher on the big board?
NYSE | NASDAQ |
15.0 | 8.8 |
10.7 | 6.0 |
20.2 | 14.4 |
18.6 | 19.1 |
19.1 | 17.6 |
8.7 | 17.8 |
17.8 | 15.9 |
13.8 | 17.9 |
22.7 | 21.6 |
14.0 | 6.0 |
26.1 | 11.9 |
23.4 | |
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State the decision rule for 0.10 significance level: H0: μNYSE ≤ μNASDAQ and H1: μNYSE > μNASDAQ. (Round your answer to 3 decimal places.)
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Compute the pooled estimate of the population variance. (Round your answer to 2 decimal places.)
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Compute the test statistic. (Round your answer to 2 decimal places.)

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