# Hypothesis testing is over viewed in global finance

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

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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.

Solution:

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.

Hypothesis:

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.