Question

3. State which is the most appropriate: z or t or neither. Give the critical value when you can.

            95% confidence; ; population is bell-shaped

4. A friend is interested to see if his stocks can beat the stock market by outperforming its change in price. He tested the claim that the mean is more than $5.15 and got a p-value of 0.0288.

Using a significance level of 0.05, give the decision and conclusion.

Answer 1

As per Chegg policy, when there are more than one distinct questions in a post, we have to solve 1 qiestion.

Also, question 3 appears to be incomplete.

Hence, solving question 4.

4)

The null and alternative hypothesis are :

Ho : Mean is less than or equal to $5.15

Ha : Mean is more than $5.15

We reject Ho when p-value is less than 0.05 which is the significance level

Given p-value = 0.0288

0.0288 < 0.05

That is p-value is less than significance level.

Hence, we reject Ho.

Decision :

Reject Ho

Conclusion :

Mean is more than $5.15