What are the three tools of financial analysis? Explain what they are and how to use them.

What are the three tools of financial analysis? Explain what they are and how to use them.

An experimenter wants to investigate the accuracy of fortune-tellers' predictions. She asks fifteen fortune-tellers and fifteen students, to make ten specific predictions about what will happen to her in the next month. She then records, for each of these groups of people, how many of the predictions come true.

1. What are the variables of interest in this study? If the study is an experimental one, identify which variable is the IV and which variable is the DV.

2. What do you think the researcher's hypothesis was?

3. Based on your answer to B, what should the null and alternative hypotheses be?

4. Based on your answer to B, which statistical test would you use to address this hypothesis? Explain your reasoning.

1. In this problem we use Regression Analysis to test the hypothesis that Dividends per share significantly affects price per share of a company.

Coefficients(a)

Model		Unstandardized Coefficients		Standardized Coefficients	t	Sig.
		B	Std. Error	Beta	B	Std. Error
1	(Constant)	26.805	3.922		6.835	.000
	Dividends Per Share Paid	2.408	.328	.811	7.345	.000

a Dependent Variable: Price Per Share of Company Stock

                                 Model Summary

Model	R	R Square	Adjusted R Square	Std. Error of the Estimate
1	.811(a)	.658	.646	9.683

a Predictors: (Constant), Dividends Per Share Paid

1. Using the SPSS results above, state the Regression Equation (Model) for this problem)

2. If an asset does not pay dividends, what will be the price of the asset?

3. If an asset pays $3.75 per share, what will be the price of the asset?

4. State the Null and Alternate Hypothesis that Dividends per Share may or may not affect the Price per Share for a company

5. What is the Critical Z value for the test at .01 Level of Significance?

6. What is your conclusion? Explain your answer.

In a study of red/green color blindness, 850 men and 2750 women are randomly selected and tested. Among the men, 77 have red/green color blindness. Among the women, 8 have red/green color blindness. Test the claim that men have a higher rate of red/green color blindness. The test statistic is The p-value is Is there sufficient evidence to support the claim that men have a higher rate of red/green color blindness than women using the 0.01% significance level? A. No B. Yes 2. Construct the 99% confidence interval for the difference between the color blindness rates of men and women. <(p1−p2)< Which of the following is the correct interpretation for your answer in part 2? A. We can be 99% confident that the difference between the rates of red/green color blindness for men and women lies in the interval B. We can be 99% confident that that the difference between the rates of red/green color blindness for men and women in the sample lies in the interval C. There is a 99% chance that that the difference between the rates of red/green color blindness for men and women lies in the interval D. None of the above

1. In a study of red/green color blindness, 950 men and 2300 women are randomly selected and tested. Among the men, 83 have red/green color blindness. Among the women, 5 have red/green color blindness. Test the claim that men have a higher rate of red/green color blindness.

The test statistic is:

The p-value is:

Is there sufficient evidence to support the claim that men have a higher rate of red/green color blindness than women using the 0.05% significance level?

A. Yes

B. No

2. Construct the 95% confidence interval for the difference between the color blindness rates of men and women.

_____ <(p1−p2)< _____

Which of the following is the correct interpretation for your answer in part 2?

A. We can be 95% confident that the difference between the rates of red/green color blindness for men and women lies in the interval

B. We can be 95% confident that that the difference between the rates of red/green color blindness for men and women in the sample lies in the interval

C. There is a 95% chance that that the difference between the rates of red/green color blindness for men and women lies in the interval

D. None of the above

In a study of red/green color blindness, 500 men and 2550 women are randomly selected and tested. Among the men, 44 have red/green color blindness. Among the women, 5 have red/green color blindness. Test the claim that men have a higher rate of red/green color blindness.
The test statistic is
The p-value is
Is there sufficient evidence to support the claim that men have a higher rate of red/green color blindness than women using the 0.01% significance level?

A. No
B. Yes

2. Construct the 99% confidence interval for the difference between the color blindness rates of men and women.
<(p1−p2)<

Which of the following is the correct interpretation for your answer in part 2?
A. We can be 99% confident that that the difference between the rates of red/green color blindness for men and women in the sample lies in the interval
B. We can be 99% confident that the difference between the rates of red/green color blindness for men and women lies in the interval
C. There is a 99% chance that that the difference between the rates of red/green color blindness for men and women lies in the interval
D. None of the above

In a study of red/green color blindness, 1000 men and 2550 women are randomly selected and tested. Among the men, 86 have red/green color blindness. Among the women, 5 have red/green color blindness. Test the claim that men have a higher rate of red/green color blindness.
The test statistic is =
The p-value is =
Is there sufficient evidence to support the claim that men have a higher rate of red/green color blindness than women using the 0.01% significance level. A.) No
B.) Yes

2. Construct the 99% confidence interval for the difference between the color blindness rates of men and women.
<(p1−p2)<

Which of the following is the correct interpretation for your answer in part 2?
A. There is a 99% chance that that the difference between the rates of red/green color blindness for men and women lies in the interval
B. We can be 99% confident that that the difference between the rates of red/green color blindness for men and women in the sample lies in the interval
C. We can be 99% confident that the difference between the rates of red/green color blindness for men and women lies in the interval
D. None of the above

In a study of red/green color blindness, 900 men and 2550 women are randomly selected and tested. Among the men, 80 have red/green color blindness. Among the women, 6 have red/green color blindness. Test the claim that men have a higher rate of red/green color blindness.
The test statistic is
The p-value is
Is there sufficient evidence to support the claim that men have a higher rate of red/green color blindness than women using the 0.01% significance level?

A. No
B. Yes

2. Construct the 99% confidence interval for the difference between the color blindness rates of men and women.
<(p1−p2)<

Which of the following is the correct interpretation for your answer in part 2?
A. We can be 99% confident that the difference between the rates of red/green color blindness for men and women lies in the interval
B. We can be 99% confident that that the difference between the rates of red/green color blindness for men and women in the sample lies in the interval
C. There is a 99% chance that that the difference between the rates of red/green color blindness for men and women lies in the interval
D. None of the above

1. In a study of red/green color blindness, 700 men and 2050 women are randomly selected and tested. Among the men, 62 have red/green color blindness. Among the women, 4 have red/green color blindness. Test the claim that men have a higher rate of red/green color blindness.
The test statistic is  
The p-value is  
Is there sufficient evidence to support the claim that men have a higher rate of red/green color blindness than women using the 0.01% significance level?

A. No
B. Yes

2. Construct the 99% confidence interval for the difference between the color blindness rates of men and women.
<(p1−p2)<  

Which of the following is the correct interpretation for your answer in part 2?
A. We can be 99% confident that the difference between the rates of red/green color blindness for men and women lies in the interval
B. There is a 99% chance that that the difference between the rates of red/green color blindness for men and women lies in the interval
C. We can be 99% confident that that the difference between the rates of red/green color blindness for men and women in the sample lies in the interval
D. None of the above