For Testing the Difference Between Two Population Proportions,the Pooled Proportion

question 58

Multiple Choice

For testing the difference between two population proportions,the pooled proportion estimate should be used to compute the value of the test statistic when the:

• A)populations are normally distributed.
• B)sample sizes are small.
• C)null hypothesis states that the two population proportions are equal.
• D)samples are independently drawn from the populations.

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Definitions:

Market Efficiency

A financial market theory suggesting that asset prices fully reflect all available information, making it impossible to consistently achieve higher returns.

Insider Trading

The illegal practice of trading on the stock exchange to one's own advantage through having access to confidential information.

Security Prices

The market value for tradable financial instruments such as stocks, bonds, and derivatives at any given time.

Efficient-Market Hypothesis

The theory that all available information is already reflected in securities prices, therefore making it impossible to consistently achieve higher returns than the overall market.