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Over a span of 10 years (120 months), you collect the following data on the monthly...

Over a span of 10 years (120 months), you collect the following data on the monthly returns large and small cap stock indices:

Large return (%) Small return (%) Difference (large - small)
Mean 1.23 1.49 1.23 - 1.49
SD 4.98 5.39 3.5

Calculate the test statistic for paired-observation test equality of the means of these two indices.

Bonus thinking question: can you reject the hypothesis that they are equal?

math   Statistics-And-Probability   
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