Midterm_Questions_Summer2004

Midterm_Questions_Summer2004 - 1. XYZ Company speculates...

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1. XYZ Company speculates that the typical rates paid by major banks on six-month certificates of deposit are related to changes in the Toronto Stock Exchange (TSE). They randomly select 24 business days on which the TSE went up and 24 days on which it went down. They then recorded the rate on six-month certificates of deposits for those days. They want to determine if there is any difference in 6-month C.D rates when the TSE goes up versus when it goes down. Use 90 % confidence level. TSE UP TSE DOWN 15.1 12.1 13.4 11.8 13.1 13.1 14.1 13.0 12.7 12.1 13.3 15.6 12.6 13.8 13.5 13.2 14.1 13.0 16.0 12.1 13.6 14.3 16.1 12.5 14.4 10.7 14.2 13.0 14.3 13.3 11.4 13.8 12.5 14.1 11.8 14.3 12.4 14.1 13.8 15.3 12.9 14.0 13.2 14.0 13.5 13.7 14.0 14.4 a) What assumptions are necessary to justify your test method? For graphs and descriptive statistics, please refer to the Appendix A. Are the variances equal to each other? b) Construct the appropriate null and alternative hypotheses.
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This note was uploaded on 09/27/2008 for the course ADM 2304 taught by Professor Unknown during the Summer '04 term at University of Ottawa.

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Midterm_Questions_Summer2004 - 1. XYZ Company speculates...

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