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Company officials are concerned about the length of time a particular drug retains its potency. A random sample (sample 1) of 10 bottles of the product is drawn from current production and analyzed for potency. A second sample (sample 2) is obtained, stored for 1 year, and then analyzed. The readings obtained are as follows:

142_Table.jpg

The data are analyzed by a standard program package (SAS). The relevant output is shown here:

566_Tbale 1.jpg

a. What is the research hypothesis?

b. What are the values of the t and t statistics? Why are they equal for this data set?

c. What are the p-values for t and t statistics? Why are they different?

d. Are the conclusions concerning the research hypothesis the same for the two tests if we use a = .05?

e. Which test, t or t, is more appropriate for this data set?

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M91978243

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