Which Stock? You want to invest in a stock and have narrowed your choices down to either

Chapter 11, Problem 22

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Which Stock? You want to invest in a stock and have narrowed your choices down to either Citibank (C) or Wells Fargo (WFC). To help you decide which stock to invest in, you decide to compare weekly rates of return for the two stocks. Which would be a better sampling plan: (a) randomly choose 15 weeks and determine the rate of return of Citibank and then independently randomly choose 15 weeks and determine the rate of return of Wells Fargo or (b) randomly choose 15 weeks and determine the rate of return of both companies and compare the rate of return. For both scenarios, explain the inferential method you would use and justify your sampling plan.

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