A Researcher Is Conducting a Matched-Pairs Study Assume That the Data Are Normally Distributed in the Population

question 3

Multiple Choice

A researcher is conducting a matched-pairs study.She gathers data on each pair in the study resulting in: $$\begin{array} { | c | c | c | } \hline \text { Pair } & \text { Group 1 } & \text { Group 2 } \\\hline 1 & 10 & 12 \\\hline 2 & 8 & 9 \\\hline 3 & 11 & 11 \\\hline 4 & 8 & 10 \\\hline 5 & 9 & 12 \\\hline\end{array}$$ Assume that the data are normally distributed in the population.The level of significance is selected to be 0.10.If a two-tailed test is performed, the null hypothesis would be rejected if the observed value of t is _______.

• A)less than -1.533 or greater than 1.533
• B)less than -2.132 or greater than 2.132
• C)less than -2.776 or greater than 2.776
• D)less than -1.860 or greater than 1.860
• E)less than -2.000 or greater than 2.000

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Definitions:

Marginal Tax Rate

The rate at which an additional dollar of income would be taxed, reflecting the rate applied to the last dollar earned.

CCA Tax Shield

A deduction that allows Canadian businesses to reduce taxable income based on the depreciation of tangible property.

Present Value

The current value of a future sum of money or stream of cash flows given a specified rate of return. Present value calculations are widely used in finance and investment for assessing the value of investments.

Discount Rate

The rate of interest employed in DCF calculations for finding out the present value of cash flows expected in the future.