Use Minitab to answer the questions. Make sure to copyall output from the Minitab:
Followings Tables shows previous 11 months stock marketreturns.
Date | Monthly SP500 Return | Monthly DJIA Return |
12/7/2007 | -0.8628 | -0.7994 |
1/8/2008 | -6.1163 | -4.6323 |
2/8/2008 | -3.4761 | -3.0352 |
3/8/2008 | -0.5960 | -0.0285 |
4/8/2008 | 4.7547 | 4.5441 |
5/8/2008 | 1.0674 | -1.4182 |
6/8/2008 | -8.5962 | -10.1937 |
7/8/2008 | -0.9859 | 0.2468 |
8/8/2008 | 1.2191 | 1.4548 |
9/8/2008 | -9.2054 | -6.0024 |
10/8/2008 | -16.8269 | -4.8410 |
1. Let consider we know the variance of monthly return for allstock were 25 percent in 2008, perform the following hypothesis foreach index:
Ho : µ = -5
Ha : µ ? -5
2. Considering the population variance is unknown, perform ahypothesis test if the average stock return is 0 or not for eachindex:
Ho : µ = 0
Ha : µ ? 0
3. Perform following hypothesis based on all assumption we hadin 2)
Ho : µ ? -3
Ha : µ < -3
4. Let’s consider the population mean of SP500 as µ1 and that ofDJIA as µ2 while none of population variance is known. Testfollowing hypothesis:
Ho : µ1 = µ2
Ha : µ1 ? µ2
5. Let’s consider the population variance of SP500 as?21and that of DJIA as?22, and none of them are known. Testfollowing hypothesis:
Ho: ?21 = ?22
Ha: ?21? ?22
6. Perform the following hypothesis test
Ho: ?21 ? ?22
Ha: ?21> ?22
