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In: Statistics and Probability

In a study comparing banks in Germany and Great Britain, a sample of 145 matched pairs...

In a study comparing banks in Germany and Great Britain, a sample of 145 matched pairs of banks was formed. Each pair contained one bank from Germany an done from Great Britain. The pairings were made in such a way that the two members were as similar as possible in regard to such factors as size anda ge (mattched samples). The ratio of total loans outstanding to total assets was calculated for each of the banks. Fort his ratio, the sample mean difference (German – Great Britain) was 0.0518, and the sample standard deviation of the differences was 0.3055. Test against a two-sided alternative, the null hypothesis that the two population means are equal.

For this problem clearly state the

a) null and alternative hypothesis,

b) decision rule and

c) conclusion.

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Expert Solution

orchestra answered 1 year ago
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