F-Test Two-Sample for Variances
VarStock 1 VarStock 2
Mean 0.1142 5.3136
Variance 7683.480188 1907.405154
Observations 50 50
df 49 49
F 4.02823709
P(F<=f) one-tail 1.46672E-06
F Critical one-tail 1.607289463
t-Test: Two-Sample Assuming Unequal Variances
Stock 1 Stock 2
Mean 8626.3762 4055.1788
Variance 302438.8045 543279.6703
Observations 50 50
Hypothesized Mean Difference 0
df 91
t Stat 35.14811747
P(T<=t) one-tail 4.89921E-55
t Critical one-tail 1.661771155
P(T<=t) two-tail 9.79842E-55
t Critical two-tail 1.986377154
Base on F test and t test above for two stocks mean return in ex-change marker answer,
A. Based on the overall results, what will be the decision of the investor regarding the two investments?
B. Discuss whether the required conditions for testing the two population means are satisfied.