 # Quant

An analyst conducts a two tailed t- test to determine whether a sample mean involving 100 observations differs from a theoretical mean of zero. The computed t-statistic is 2.90. Using a 5% signifiacance level, which of the following conclusions is the most appropriate to reach? A) Refrain from drawing a conclusion b/c the # of observations is insufficient B) Accept the null hypothsis that the sample mean is not significantly different from zero C) Reject the alternative hypothesis that the sample mean is significantly different from zero D) Reject the null hypothesis and accept the alternative hypothesis that the sample mean is significantly different from zero I got this right, but I’d like to verify if my calculations were right.

Ho: mean = 0 Ha: mean != 0 (Claim) t-critical = t(99, 0.05/2) = 2.2760 t-statistic = 2.90 … which falls in the rejection region. Reject H0, Fail to Reject Ha… So the sample mean is significantly different from 0. is thw answer D?? - Dinesh S

just eyeballing this, I’d say D. Calculations? What exactly did you calculate, it’s all given. edit: I see Dinesh beat me to it Yup D. Good stuff Dinesh!

t0.025= 1.96 t-statistic = 2.90 ==> Fail to accept H0 (u=0) ==> D

haha lola…ignore that! I don’t even know why I put it in there. Initially, I mis-read the question (as a result of skimming through it rapidly at work), and thought it was an equality of means question. But clearly it’s not.