Question

Please explain to me on how you got that answer, thank you!

1. You will need your ticker code (show your ticker code on your homework and include a printout of the data!) for stock prices for this question. Use your ticker code to obtain the closing prices for the following two time periods to obtain two data sets: March 2, 2018 to March 16, 2018 February 16, 2018 to February 28, 2018Data set B Data set A Take the closing prices from data set B and add 0.5 to each one of them. Treat data sets A and B as hypothetical sample level data on the weights of newborns whose parents smoke cigarettes (data set A), and those whose parents do not (data set B) a) Conduct a hypothesis test to compare the variances between the two data sets. b) Conduct a hypothesis to compare the means between the two data sets. Selecting the assumption of equal variance or unequal variance for the calculations should be based on the results of the previous test. c) Calculate a 95% confidence interval for the difference between means 12:42 2 Quote Lookup Time Period: Mar 02, 2018- Mar 16, 2018 Show: Historical Prices Frequency: Daily Apply Download Data Currency in USD Open High Low Closeo Advol Closet Vol Date Mar 16, 2018 16.60 16.72 15.23 15.80 15.80 Mar 15, 2018 16.99 17.41 15.96 16.59 16.59 Mar 14, 2018 16.59 17.59 14.94 17.23 17.23 Mar 13, 2018 15.70 16.98 15.03 16.35 16.35 Mar 12, 2018 15.28 16.35 15.18 15.78 15.78 Mar 09, 2018 16.41 16.75 13.31 14.64 14.64 Mar 08, 2018 17.56 17.68 14.91 16.54 16.54 Mar 07, 2018 20.11 20.49 17.52 17.7617.76 Mar 06, 2018 18.25 19.64 17.68 18.36 18.36 Mar 05, 2018 21.55 21.57 17.94 18.73 18.73 Mar 02, 2018 22.47 26.22 19.36 19.59 19.59 *Close price adjusted for splits. Adjusted close price adjuste for both dividends and splits. Data Disclaimer Help Suggestions Privacy (Updated) About Our Ads Terms (Updated) 2019 Verizon Media. All rights reserved. 12:53 tall 71 % YAHOO FINANCE Quote Lookup Currency in USD Time Period: Feb 16, 2018 - Feb 28, 2018 Show: Historical Prices v Frequency: Daily v Apply Currency in USD 出Download Data Adj Open High Low Colot Date Volu Feb 28, 2018 18.08 20.44 15.65 19.85 19.85 Feb 27, 2018 15.83 18.98 15.29 18.59 18.59 Feb 26, 2018 16.53 16.94 15.80 15.80 15.80 Feb 23, 2018 17.96 18.80 16.47 16.49 16.49 Feb 22, 2018 20.57 20.61 18.07 18.72 18.72 Feb 21, 2018 20.76 21.04 16.97 20.02 20.02 Feb 20, 201820.53 21.61 19.75 20.60 20.60 Feb 16, 2018 18.74 20.99 17.44 19.46 19.46 *Close price adjusted for splits. **Adjusted close price adjuste for both dividends and splits

Answer 1

As we are to deal with only the close prices and add 0.5 to each of them as asked in the question, we ignore rest of the columns.

a) Test for Two Variances: A, B :

Null hypothesis σ(A) / σ(B) = 1
Alternative hypothesis σ(A) / σ(B) ≠ 1
Significance level α = 0.05

Test :

method	df1	df2	test statistic	p-value
Levene	1	17	0.1	0.757

STEPS : stat-> basic statistic-> 2 variance

CONCLUSION : we accept the null hypothesis as p-value=0.757>0.05 and conclude there is no significant difference in variance between the two data sets.

b)

Two-Sample T-Test and Cl: A, B Two-sample T for A vs B N Mean StDev SE Mean A 11 17.03 1.470.44 В 818.69 1.71 0.61 Difference Estimate for difference: -ї.658 95% CI for difference : (-3.278, -0.038) T-Test of difference= 0 (vs#): T-Value=-2.21 P-Vaïue= 0.046 DF=13 (A) (B) 2.21 P-Value0.046 DF 13

as p-value=0.046<0.05, we reject the null hypothesis and conclude that the two groups have significant difference in their means. i.e smoking affects the weights of newborn on average.

steps : stat-> basic statistics-> 2 sample t. select appropriate columns in the boxes.click ok.

c) 95% CI for difference: (-3.278, -0.038)

steps: as above. ( CI is also given in the picture)