A Financial Analyst Working for a Financial Consulting Company Wishes

question 130

Multiple Choice

A financial analyst working for a financial consulting company wishes to find evidence that the average price-to-earnings ratio in the consumer industry is higher than the average price-to-earnings ratio in the banking industry. The alternative hypothesis is

• A) μ_consumer = μ_banking.
• B) μ_consumer ≤ μ_banking.
• C) μ_consumer > μ_banking.
• D) μ_consumer < μ_banking.
• E) μ_consumer ≠ μ_banking.

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