16.58 Comparative study of U.S. and Indian firms.
Are managerial efficiencies of similar U.S. and Indian firms comparable? A study was conducted to evaluate the relative managerial efficiencies of 14 match-paired U.S. and Indian firms.21 Each pair of firms chosen in the study consists of one U.S. firm and one Indian firm producing similar product and having approximately the same size. Here are the data on the cumulative return on assets (ROA) for each firm over a five-year span.
usin
| Paired firms | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
| U.S. | 34.32 | 9.61 | 11.73 | 20.74 | 23.58 | 10.38 | 40.24 |
| Indian | 59.87 | 39.25 | 13.13 | 32.79 | 18.13 | 28.14 | 81.45 |
| Paired firms | 8 | 9 | 10 | 11 | 12 | 13 | 14 |
| U.S. | 84.55 | 9.95 | 16.3 | 0.50 | 7.42 | 9.38 | 43.53 |
| Indian | 58.27 | 37.14 | 9.73 | 6.61 | 3.22 | 0.18 | 43.74 |
Test the null hypothesis that there is no difference between the two countries in terms of managerial efficiency as measured by ROA.