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3. To test whether companies that fail differ from companies that continue to operate, on average, the noted financial markets expert, Susan Senbet (also known as the Silver Spring Sage), compared the current ratios for a random sample of companies that failed to the current ratios for a random sample of companies that are healthy and continue to operate (NOTE: current ratio = current assets ÷ current liabilities). Use the table below, that Susan generated with MS Excel, to answer/complete Parts a through e: t-Test: Two-Sample Assuming Unequal Variances HEALTHY FAILED Mean 1.7970 0.8218 Variance 0.496777 0.239625 Observations 23 22 Hypothesized Mean Difference 0 df 39 t Stat P(T<=t) one-tail 0.0000017 t Critical one-tail P(T<=t) two-tail 0.0000034 t Critical two-tail a. State the null and alternative hypotheses associated with the test. b. What is the calculated value of the associated test statistic? c. What is the p-VALUE for the test (please use SEVEN decimal places)? d. If ? = 0.01, state your decision regarding the null hypothesis by comparing ? to the p-VALUE (from Part c). e. State your conclusion (meaning, describe what the decision means in this problem).

          3. To test whether companies that fail differ from companies that continue to operate, on average, the noted financial markets expert, Susan Senbet (also known as the Silver Spring Sage), compared the current ratios for a random sample of companies that failed to the current ratios for a random sample of companies that are healthy and continue to operate (NOTE: current ratio = current assets ÷ current liabilities). Use the table below, that Susan generated with MS Excel, to answer/complete Parts a through e:

t-Test: Two-Sample Assuming Unequal Variances

HEALTHY FAILED
Mean 1.7970 0.8218
Variance 0.496777 0.239625
Observations 23 22
Hypothesized Mean Difference 0
df 39
t Stat
P(T<=t) one-tail 0.0000017
t Critical one-tail
P(T<=t) two-tail 0.0000034
t Critical two-tail

a. State the null and alternative hypotheses associated with the test.
b. What is the calculated value of the associated test statistic?
c. What is the p-VALUE for the test (please use SEVEN decimal places)?
d. If ? = 0.01, state your decision regarding the null hypothesis by comparing ? to the p-VALUE (from Part c).
e. State your conclusion (meaning, describe what the decision means in this problem).

3. To test whether companies that fail differ from companies that continue to operate, on average, the noted financial markets expert, Susan Senbet (also known as the Silver Spring Sage), compared the current ratios for a random sample of companies that failed to the current ratios for a random sample of companies that are healthy and continue to operate (NOTE: current ratio = current assets ÷ current liabilities). Use the table below, that Susan generated with MS Excel, to answer/complete Parts a through e:

t-Test: Two-Sample Assuming Unequal Variances

HEALTHY FAILED
Mean 1.7970 0.8218
Variance 0.496777 0.239625
Observations 23 22
Hypothesized Mean Difference 0
df 39
t Stat
P(T<=t) one-tail 0.0000017
t Critical one-tail
P(T<=t) two-tail 0.0000034
t Critical two-tail

a. State the null and alternative hypotheses associated with the test.
b. What is the calculated value of the associated test statistic?
c. What is the p-VALUE for the test (please use SEVEN decimal places)?
d. If ? = 0.01, state your decision regarding the null hypothesis by comparing ? to the p-VALUE (from Part c).
e. State your conclusion (meaning, describe what the decision means in this problem).

Added by Charles L.

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