Suppose We Wish to Test the Hypothesis That an Internship

question 26

Multiple Choice

Suppose we wish to test the hypothesis that an internship program allows its interns to earn $2,750 per semester and let us assume that this hypothesis is,in fact,true.Which of the following best illustrates the logic of hypothesis testing at the 95% confidence level?

• A)From among 100 samples,95 percent of them would generate means that fell within ±1.96 z scores.
• B)From among 99 samples,100 percent of them would generate means that fell within ±2.58 z scores.
• C)From among 100 samples,95 percent of them would generate means that fell within ±2.58 z scores.
• D)From among 100 samples,99 percent of them would generate means that fell within ±1.96 z scores.
• E)From among 95 samples,100 percent of them would generate means that fell within ±1.96 z scores.

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Definitions:

Refund Liability

An obligation recorded by a company to reflect anticipated refunds to customers for returned or unsatisfactory products.

Refund Liability

An obligation to return funds received from customers in the event of product returns or dissatisfaction, represented as a liability on the balance sheet.

Deferred Revenue Account

An account on a company's balance sheet that represents payment received from customers for goods or services not yet delivered or completed.

Contra Asset Account

An asset account where its balance is a negative figure that is subtracted from the balance of its related accounts on the balance sheet.