Health Economics Research Paper Example | Topics and Well Written Essays - 1500 words

Health Economics - Research Paper Example This means that most firms sampled that remained in business lies below the mean rating of the ratio of current assets and current liabilities. The median is greater than the mean. Furthermore, it is noted that there is an outlier in the data with a firm showing a ratio of 0.23. The distribution is also spread wide as shown by low kurtosis value and longer range. On the other hand, the shape of the distribution for firms that failed is positively skewed. The data gathered showed that most firms that failed are above the mean. The distribution is also peaked and shorter ranged. b) To test the hypothesis that failed firms have a lower ratio of assets to liabilities, the statistical procedure conducted is t-test. A null hypothesis is first created. The null hypothesis would be that the ratio of current assets and liabilities has no effect on the success or failure of the firm. If the data departs from the null hypothesis, then our alternate hypothesis that failed firms have a lower ratio of assets to liabilities will be correct. Below are the data for the t-test. The results as shown by the table above indicated that there is a significant difference in the assets to liabilities ratio between the firms that remained and the firms that failed at the 0.05 level. ... The distribution is also peaked and shorter ranged. b) To test the hypothesis that failed firms have a lower ratio of assets to liabilities, the statistical procedure conducted is t-test. A null hypothesis is first created. The null hypothesis would be that the ratio of current assets and liabilities has no effect on the success or failure of the firm. If the data departs from the null hypothesis, then our alternate hypothesis that failed firms have a lower ratio of assets to liabilities will be correct. Below are the data for the t-test. t-Test: Two-Sample Assuming Equal Variances Alpha = 0.05 Firms that Remained Firms that Failed Mean 1.73 0.82 Variance 0.41 0.23 Observations 68 33 Pooled Variance 0.35 Hypothesized Mean Difference 0 df 99 t Stat 7.172 P(T