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# Hypothesis testing is over viewed in global finance

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

https://brainmass.com/statistics/hypothesis-testing/hypothesis-testing-overviewed-global-finance-225757

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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

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.

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