Answer:
To perform a t-Test, execute the following steps.
1. First, perform an F-Test to determine if the variances of the two populations are equal.
2. On the Data tab, in the Analysis group, click Data Analysis.
3. Select t-Test: Two-Sample Assuming Unequal Variances and click OK.
Select t-Test: Two-Sample Assuming Unequal Variances
4. Click in the Variable 1 Range box and select the range of first variable
5. Click in the Variable 2 Range box and select the range of second variable
6. Click in the Hypothesized Mean Difference box and type the drsited(Eg:H0: μ1 - μ2 >0)
Enter the desired level of significance (.01 here)
7. Click in the Output Range box
8. Click OK.
Results will appear
Interpretation
p value method
If the p value (one tailed) is greater than 0.05,the null hypothesis is accepted and mean of stock returns outperforms mean of bound returns
t critical value method
If the t stat is smaller than t critical(one tail),then null hypothesis is accepted and mean of stock returns outperforms bound returns
Step-by-step explanation:
