Some financial analysts believe that the election of a Republican president is good for the stock market. To test this claim, one study (155) recorded the ten-year growth in Standard & Poor’s index...

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Some financial analysts believe that the election of a Republican president is good for the stock market. To test this claim, one study (155) recorded the ten-year growth in Standard & Poor’s index following each election of a new president. The results are given in the table below.

DemocratsRepublicansWinnerS&P GrowthWinnerS&P GrowthRoosevelt ’3622.4Eisenhower ’5245.7Roosevelt ’4024.0Eisenhower ’5628.6Roosevelt ’4438.0Nixon ’6814.2Truman ’4845.7Nixon ’7218.8Kennedy ’6021.2Reagan ’8050.3Johnson ’6417.9Reagan ’8440.1Carter ’7638.2Bush ’8852.4Clinton ’9233.7  Clinton ’9623.8

Is the higher average for the Republicans statistically significant? Test at the 0.01 level. Do not assume the variances are equal.



Answered Same DayDec 29, 2021

Answer To: Some financial analysts believe that the election of a Republican president is good for the stock...

David answered on Dec 29 2021
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