In the Figure Below, What Is True About the Two

question 95

Multiple Choice

In the figure below, what is true about the two jobs?

• A) Job 1 has a lower standard deviation than Job 2.
• B) All outcomes in both jobs have the same probability of occurrence.
• C) A risk-averse person would prefer Job 2.
• D) A risk-neutral person would prefer Job 1.
• E) Job 1 has a higher expected income than Job 2.

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Definitions:

Sampling Distribution

The probability distribution of a given statistic based on a random sample.

Mean

The mathematical average of a set of numbers, calculated by adding them up and dividing by the count of those numbers.

Directional Null Hypothesis

A null hypothesis that specifies the direction of the expected difference or relationship between two variables, which is not a standard form of null hypothesis and might be considered a misinterpretation, as null hypotheses typically state there is no effect or difference.

Directional Alternative Hypothesis

A hypothesis that specifies the direction of an expected difference or relationship, not just the existence of a difference.