Suppose we have two independent, normally distributed, populations and we draw a random sample from each population. For population A, we drew a sample of 13 and found the mean to be 17 with a standard deviation of 4. For population B, we drew a sample of 12 with a mean of 19 and a standard deviation of 3. We want to determine if the treatments result in the same effect. Show all work.

Since the calculated value of z=  -1.421 does not lie in the critical region z >

- 1.96 the null hypothesis is accepted and it is concluded that the treatments result in the same effect.

Step-by-step explanation:

1) Let the null and alternate hypothesis be

H0:  μa  − μb = 0  the treatments result in the same effect

against the claim

Ha: μa − μb ≠ 0   the treatments  do not result in the same effect

2) The significance level is set at 0.05

3) The critical region is z =  ± 1.96

4) The test statistic

Z= x1`-x2`/ sqrt [( s1²/n1+ s2²/n2)]

Here

x1`= 17             s1= 4               n1= 13

x2`= 19             s2= 3             n2= 12

5) Calculations

Z= x1`-x2`/ sqrt [( s1²/n1+ s2²/n2)]

z= 17-19/sqrt [( 16/13+ 9/12)]

z= -2/1.40739

z= -1.421

6) Conclusion

Since the calculated value of z=  -1.421 does not lie in the critical region z >

- 1.96 the null hypothesis is accepted and it is concluded that the treatments result in the same effect.

4400

step-by-step explanation:

required rate of return = 0.166 = 16.6%

step-by-step explanation:

under the capital asset pricing model (capm), the required or expected rate of return for a particular security or asset is given using the formula:

required rate of return = risk-free rate + beta*(market risk premium)

we are given that;

risk-free rate = 4% = 0.04

beta = 1.4

market risk premium = 9% = 0.09

we simply plug these values into the above formula;

required rate of return = 0.04 + 1.4*(0.09)

required rate of return = 0.04 + 0.126

required rate of return = 0.166 = 16.6%