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In: Statistics and Probability

A sample of ? = 50 non-listed UK companies had an average level of profit/loss (divided...

A sample of ? = 50 non-listed UK companies had an average level of profit/loss (divided by turnover) during the previous year equal to ? = 0.27%, with a sample standard deviation of ? = 1.25%.

(i) Test whether there is convincing evidence that non-listed UK companies on average made a profit during the previous year (at a significance level of 5%).

(ii) Test whether there is convincing evidence that non-listed UK companies on average made a loss during the previous year (at a significance level of 5%). Considering your results from (i) and (ii), briefly discuss what you can conclude about the average profitability of non-listed UK firms.

(iii) Construct a 95% confidence interval around the sample mean ?, and briefly discuss the intuition behind this interval.

(iv) Re-do the test in (i) assuming that the sample size was equal to ? = 200. Briefly compare the results to those obtained in (i).

(v) Re-do the test in (i) assuming a significance level of 10%. Briefly compare the results to those obtained in (i).

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Please rate my answer and comment for doubt

orchestra answered 2 years ago
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