Wk 1 - Assignment -No Plagiarism PLEASE read before accepting assignment. Assignment is Due Tomorrow, September 24, by 3pm EST.
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weekonehypothesistestinexcel.docxExcel for Single Mean Hypothesis Test
Situation: I am looking to invest my time or money and a considering investing in a mutual fund and I want to know does this fund exceed the 10% annual return, which is the historical average stock market.
Step One
You will first need to open up the file or add the data into columns and be sure to have column headings as this will make it easier for you to know which column you want to highlight.
( Megastat is under add- ins )Step Two
You will not need to move your cursor up to the section where it has add ins as this is where you’ll find access to Megastat assuming you have downloaded Megastat.
( Megastat )Step Three
When you click on add-ins you will see Megastat displayed. Click on Megastat.
Step Four
(
Hypothesis tests and commands
)
When you click on mega-stat you’ll find a drop-down menu listing multiple statistical procedures. This is where you will find access to all the statistical commands that you need to do.
Step Five
(
Test chosen
)
You are doing a single meaning hypothesis test therefore you choose the first option Mean vs Hypothesize value because you only have one sample, and you are using the results of this to compare it against the hypothesized value for status quo or no difference in a situation. In this case, the long term average for stocks is 10% return.
Step Six
Your first step is to move your cursor and highlight the data that you’ll want to enter into this box. This is where you are going to tell the computer to find your data.
(
Data selected
) (
Step one data
)
Step Seven
(
Title Included
) (
Data entry range
)
To choose your data simply highlight the data cells and if you have column headings you can include the column heading for it will add the heading title in the test results. The data for the New Perspective Return has been highlighted and you’ll see the corresponding cell references in the box.
Step Eight
(
H1
= greater than
) (
Choose a test
= T Test
) (
Level of significance
= 95%
) (
Mean Tested
= 10
)
The next step is to enter what the hypothesized mean or average is for the problem. In this situation the mean is the 10% or 10. Since we are using sample standard deviation, we use the T test.
The test HO, H1 and Decision Rule are defined
HO: The mean is equal to ten (ten goes into the hypothesized mean box)
H1: The mean is not equal to ten (not equals goes into the H1 Box)
Level of significance = .05 this goes with the 95% confidence interval box.
Note” 100% - 95% = 5%( level of significance but megastat wants you to give it the information in terms of a confidence interval.)
Step Nine
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Hypothesis Test: Mean vs. Hypothesized Value |
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10.00000 |
hypothesized value |
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14.07300 |
mean New Perspective Return in % |
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19.18708 |
std. dev. |
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6.06749 |
std. error |
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10 |
n |
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9 |
df |
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0.671 |
t |
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.2594 |
p-value (one-tailed, upper) |
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Be sure to change tab label at bottom of page to “HO Test” and highlight with Light Blue colored tab.
