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?
Submit your answers in a three- to four-page Microsoft Word document.