# Financial Statistics

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Solution 1:

H0: μ1 - μ2 < 10,000 vs HA : μ1 - μ2 > 10,000

Solution 2: The following information are provided:

For man:

Size of the sample (n1) = 200

Sample mean (Xbar) = 58,939

Standard deviation for sample (s1) = 10,000

For woman:

Size of the sample (n1) = 302

Sample mean (Xbar) = 47, 315

Standard deviation for sample (s1) = 9,000

The significance level is = 0.05

The critical value t, from the t distribution with n1 + n1 -2 = 500 degrees of freedom, t =1.96

= 1.89

We rejectH0, if T > t.

Here, T< t, so we don’t reject H0

In conclusion, we have sufficient evidence to conclude that the median incomes difference between men and woman is less than 10,000.

1. The assumptions are as following: a. Both samples are drawn from normally distributed population. Median income and the mean income are the same. 2. Both populations have equal standard deviation.

QUESTION 5

In conjunction with the housing foreclosure crisis of 2009, many economists expressed increasing concern about the level of credit card debt and efforts of banks to raise interest rates on