What Can We Conclude If We Reject the Null Hypothesis

question 6

Multiple Choice

What can we conclude if we reject the null hypothesis in an independent-samples t-test?

• A)It is likely that sampling error accounted for the differences between the sample means.
• B)It is likely that the sample means came from the same population.
• C)The difference between our sample means is unlikely to be representing zero difference in the population means.
• D)The difference between our sample means is merely a poor representation of zero difference in the population means.

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Definitions:

Market Return

The total return of an investment market, comprising both capital gains and dividends or interest, over a given period.

Risk-Free Rate

The theoretical return on an investment with no risk of financial loss, typically represented by the yield on government bonds.

Beta

A measurement of a stock's volatility in relation to the overall market; a beta above 1 indicates that the stock's price is more volatile than the market, while a beta below 1 indicates less volatility.

Portfolio

A collection of financial investments like stocks, bonds, commodities, cash, and cash equivalents, including closed-end funds and exchange traded funds (ETFs).