Locate 15 publicly traded retail firms. Consider searching for these retail firms using the following keywords: retail firms, retailers, and publicly traded companies.
Calculate the current ratio for each of the firms.
Then, answer the following questions:
Is the average current ratio for the sample of 15 firms greater than 2.0?
What’s the null hypothesis for this hypothesis test?
What’s the alternative hypothesis for this hypothesis test?
Choose at least three different significance levels to conduct the hypothesis test. Is it possible that a Type I error occurred with the hypothesis test? Why or why not?
Is it possible that a Type II error occurred? Why or why not?