Question

wondering how to find the P-value from the data given. I have t-tables and diffewnt tables but not sure how to use them.

3. Some analysts are recommending investment in large oil companies while avoiding investment in small oil companies. To review this claim, the earnings per share for 10 large. international oil companies and 13 small, domestic oil companies are recorded for the past year. A summary of the data is provided in the accompanying table. Do the data support the claim that large oil companies are the better performers? Use a = 0.01, and df oft -20. Large Oil Companies 1 = $6.54 n Small Oil Companies X, = $4.75 = 10 13 = 2.65 sy = 1.85 What is the null and alternative hypothesis? Ho u = Us HA: u, uz What is the test statistic? ts 1-2 5 (9,-1)+31 (0-1) - 6.54 -4.75 (2.65*(10-1)+(1.25) L13-1) 10+13-2 0193726 What is the critical value? (2.528 df = 20 What is your decision? What is the p-value? (Use tables to find)

Answer 1

Answer:

Given test statistic = 1.91

Given degrees of freedom= 20

This is an upper tail test.

Critical values at 0.01 level = 2.528

Test statistic is < critical value.

Ho is not rejected at 0.01 level of significance.

Therefore we write the p value as : P > 0.01

Excel Analysis for the data:

Pooled-Variance t Test for the Difference Between Two Means
(assumes equal population variances)
Data
Hypothesized Difference	0
Level of Significance	0.01
Population 1 Sample
Sample Size	10
Sample Mean	6.54
Sample Standard Deviation	2.65
Population 2 Sample
Sample Size	13
Sample Mean	4.75
Sample Standard Deviation	1.85
Intermediate Calculations
Population 1 Sample Degrees of Freedom	9
Population 2 Sample Degrees of Freedom	12
Total Degrees of Freedom	21
Pooled Variance	4.9654
Standard Error	0.9373
Difference in Sample Means	1.7900
t Test Statistic	1.9098
Upper-Tail Test
Upper Critical Value	2.5176
p-Value	0.0350
Do not reject the null hypothesis