The above result shows that there is a significant difference in the values of

The above result shows that there is a significant

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The above result shows that there is a significant difference in the values of both the ROE figures of the bank i.e before the introduction of the act and after the introduction of the act. It is evident
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from the fact that T stat value is greater than T critical value for two tail. Also the t stat value is higher than t critical value so we accept the Null hypothesis. i.e the ROE would be lower following the enactment of the Sarbanes-Oxley Act. We know that a false positive or a type I error is the incorrect rejection of a true null hypothesis whereas a false negative or a type II error is the failure to reject a false null hypothesis. In this particular case it is evident that there isn’t a false positive or type I error as the null hypothesis is accepted basis the statistical information from the tests employed. Is it possible that a Type II error occurred? Why or why not? However, there is a possibility of the second type of error or a false negative. The null hypothesis which is accepted could itself be the false. i.e ROE would be higher following the enactment of the Sarbanes-Oxley Act. With a larger sample and higher level of significance, the test statistical value might go up as against the critical value. Meaning which the Null hypothesis would be rejected.
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Reference Doane, D. P. & Seward L. E. (2011). Applied statistics in business & economics, 3rd edition. New York, NY. McGraw-Hill/Irwin. Nasisi, Sol. "The Best Savings Rates, CD Rates, Mortgage Rates, and more to help you save and earn more money.." The Best Savings Rates, CD Rates, Mortgage Rates, and more to help you save and earn more money.. N.p., n.d. Web. 8 Jan. 2012. <;. South University Online. (2011). BUS3059 S01: Quantitative business analysis: Week three: Test hypothesis of one sample. Retrieved 2012, January, 8 from:
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