Explore BrainMass

Explore BrainMass

    Hypothesis testing is over viewed in global finance

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Explain how hypothesis testing is used to answer research questions in global finance. What are some examples?

    © BrainMass Inc. brainmass.com June 3, 2020, 10:19 pm ad1c9bdddf

    Solution Preview

    hypothesis testing used to answer research question on global financial
    Can you please explain hypothesis testing used to answer research questions in global financial. What are some examples.

    Please expain and give any refrences if any. Thanks

    Also please help me come up with a hypothesis question.

    Purpose of the research:
    The main purpose of the research is to analyze the given global financial data and develop one reasonable research question. From that research question, we have to carry a reasonable test and we have to infer about the population from the sample we are having.

    Description of the research problem:
    The data given consists of the variables like
    x1 Company Name
    x2 Economic Sector
    x3 Economic Industry
    x4 Employees (in thousands)
    X5 Sales (Millions of dollars)
    x6 Cost of sales (millions of dollars)
    x7 Gross Profit (Millions of dollars)
    x8 Gross Profit Margin (percent)
    x9 Total Taxes( Thousands of dollars)
    x10 Net income (Thousands of dollars)
    x11 ROA, Return on assets (percent)
    x12 ROI, Return on investment (percent)

    The Main purpose of the research is to find whether the net income of the company population mean is equal or not to the sample mean .
    Aim of using one sample test:
    A one sample hypothesis test for answering questions about the mean where the data are a random sample of independent observations from an underlying normal distribution N(µ, ), where is unknown.
    The null hypothesis for the one sample test is:
    H0: µ = µ0, where µ0 is known.
    That is, the sample has been drawn from a population of given mean and unknown variance (which therefore has to be estimated from the sample).
    This null hypothesis, H0 is tested against one of the following alternative hypotheses, depending on the question posed:
    H1: µ is not equal to µ
    H1: µ > µ
    H1: µ < µ

    The descriptive statistics for Net income for the companies is

    Net Income
    count 148
    mean 2,482.19093
    sample variance 11,585,848.83730
    sample standard deviation 3,403.79918
    minimum -14241.552
    maximum 18183
    range 32424.552
    sum 367,364.25800
    sum of squares 2,614,988,009.18976 ...

    Solution Summary

    The solution explains how hypothesis testing is used to answer research questions in global finance. Examples of this are given.