Page 41 - FINAL CFA SLIDES DECEMBER 2018 DAY 4
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Session Unit 3:

                                                                                                          12. Hypothesis Testing

       LOS 12.h: Identify the appropriate TS and interpret the results for a HT concerning the equality of the

       population means of 2 at least approximately normally distributed populations, based on independent
       random samples with 1) equal or 2) unequal assumed variances, p. 291
















       Make a decision regarding the hypothesis.








       Test statistic, –7.3739, falls

       to the left of the lower

       critical t-value, So?






                                                     Reject Ho and conclude that the announcement period
                                                     mean abnormal returns are different for horizontal and

                                                                                  vertical mergers.
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