In: Statistics and Probability
Samuel has two different methods to make money off of the stock market, but he doesn't know which method is better, so he tried both methods for one year. On the one hand plan 1 (SP1) made on average X¯1=19.24 dollars per week, where plan 2 (SP2) made an average X¯2=15.30 dollars per week. The downside of plan 1, however, seems to be that the standard deviation, s1=21.39 is greater then plan 2's and once he even had a minimum of -17.37 dollars one week. Plan 2 appears to be more conservative, s2=17.08 and the lowest amount made in a week was -13.85. Can you help him find out whether these two plans are statistically similar? In all cases use SP1 as sample 1. The specifics can be found in the file below.
SP1 | SP2 |
14.74 | 11.98 |
31.02 | 5.4 |
35.34 | 27.12 |
-14.82 | -9.59 |
43.08 | -2.82 |
23.96 | 39.03 |
49.06 | -11.4 |
42.85 | -6.92 |
11.67 | 16.93 |
49.75 | 35.32 |
-12.33 | 36.08 |
26.18 | 32.8 |
26.19 | 4.15 |
-16.96 | 15.33 |
45.54 | 24.82 |
43.95 | -8.02 |
-8.75 | 11.06 |
-7.69 | 36.47 |
50.21 | 39.89 |
31.17 | 5.04 |
11.4 | 36.58 |
1.13 | 14.05 |
27.49 | -0.71 |
34.6 | 33.49 |
9.33 | 33.25 |
3.59 | 22.28 |
39.77 | -7.17 |
23.01 | 36.29 |
-12.72 | 15.71 |
34.4 | 36.99 |
34.35 | 18.65 |
-17.37 | 15.32 |
10.95 | 20.21 |
47.2 | 18.64 |
8.72 | 13.5 |
5.98 | -5.2 |
20.95 | 24.2 |
51.72 | 22.38 |
24.89 | 35.73 |
44.53 | -4.29 |
45.22 | 38.72 |
15.97 | -6.65 |
42.85 | -6.2 |
3.37 | -1.98 |
3.23 | -13.85 |
38 | -9.03 |
3.39 | 26.51 |
-1.68 | 32.77 |
-13.59 | -6.38 |
0.71 | 4.84 |
-9.15 | 33.34 |
4.11 | 20.81 |
Check to see if the distribution of the stock plans appear to be
normal. Hint: use a probability plot to decide and an alpha =
0.05
A. neither plan 1 appear to be normal nor plan 2
appear to be normal
B. Both plan 1 and plan 2 appear to be
normal
C. plan 2 appears to be normal but plan 1 does not
appear to be normal
D. plan 1 appears to be normal but plan 2 does not
appear to be normal
(b) Report the p-value of the test you ran in (a) concerning the
normality of plan 2 use exactly two decimals in your answer.
P-value =
(c) Does there appear to be a statistical difference between Stock
Plan 1 and Stock Plan 2? (Remember to use CLT if applicable)
A. I don't have enough information to answer this
question
B. I have too much information to answer this
question
C. Yes
D. No
(d) Report the test statistic value you ran in (c). Use at least
two decimals in your answer.
(e) Report the p-value of the test you ran in (c). Use at least
three decimals in your answer.
P-value =
Check to see if the distribution of the stock plans appear to be
normal. Hint: use a probability plot to decide and an alpha =
0.05
A. neither plan 1 appear to be normal nor plan 2
appear to be normal
(b) Report the p-value of the test you ran in (a) concerning the
normality of plan 2 use exactly two decimals in your answer.
P-value = <0.00
(c) Does there appear to be a statistical difference between Stock
Plan 1 and Stock Plan 2? (Remember to use CLT if applicable)
D. No
(d) Report the test statistic value you ran in (c). Use at least
two decimals in your answer.
1.04
(e) Report the p-value of the test you ran in (c). Use at least
three decimals in your answer.
P-value = 0.3013
SP1 | SP2 | |
19.2406 | 15.2975 | mean |
21.3864 | 17.0758 | std. dev. |
52 | 52 | n |
102 | df | |
3.94308 | difference (SP1 - SP2) | |
374.48124 | pooled variance | |
19.35152 | pooled std. dev. | |
3.79514 | standard error of difference | |
0 | hypothesized difference | |
1.04 | t | |
.3013 | p-value (two-tailed) |