Last Year, During an Investigation of the Time Spent Reading

question 35

Short Answer

Last year, during an investigation of the time spent reading emails on a daily basis, researchers found that on Monday the average time was 50 minutes. Office workers claim that with the increased spam and junk mail, this time has now increased. To conduct a test, a sample of 25 employees is selected, with the following results: sample mean = 51.05 minutes and sample standard deviation = 4.42 minutes. Calculate the appropriate test statistic to apply the critical value rule on the hypothesis that the time has increased from last year.

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Definitions:

Default Risk Premium

The additional yield that an investor demands for holding a bond with default risk over a similar risk-free security.

Nominal Interest Rate

The rate of interest before adjustments for inflation.

Bond Yield

The return an investor realizes on a bond, calculated by dividing the annual interest payments by the bond's current market price.

Borrowing

The act of obtaining funds from another party with the agreement to repay, typically with interest.