TABLE 9-3 An Appliance Manufacturer Claims to Have Developed a Compact Microwave

question 38

Multiple Choice

TABLE 9-3
An appliance manufacturer claims to have developed a compact microwave oven that consumes a mean of no more than 250 W.From previous studies,it is believed that power consumption for microwave ovens is normally distributed with a population standard deviation of 15 W.A consumer group has decided to try to discover if the claim appears true.They take a sample of 20 microwave ovens and find that they consume a mean of 257.3 W.
-Referring to Table 9-3,the appropriate hypotheses to determine if the manufacturer's claim appears reasonable are

• A)H₀ : μ = 250 versus H₁ : μ ≠ 250.
• B)H₀ : μ ≥ 250 versus H₁ : μ < 250.
• C)H₀ : μ ≤ 250 versus H₁ : μ > 250.
• D)H₀ : μ ≥ 257.3 versus H₁ : μ < 257.3.

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Definitions:

Bogey Portfolio

A benchmark portfolio against which the performance of an investment portfolio is measured, often used to assess the skill of portfolio managers.

Excess Return

Excess Return is the return on an investment above the return of a benchmark index or risk-free rate of return.

Asset Classes

Broad categories of investments with similar characteristics and market behaviors, such as equities (stocks), fixed income (bonds), and real estate.

Total Excess Return

The overall return of an investment above the risk-free rate over a specified time period.