If We Are Interested in Testing Whether the Mean of Items

question 170

Multiple Choice

If we are interested in testing whether the mean of items in population 1 is larger than the mean of items in population 2, the

• A) null hypothesis should state μ1 - μ2 < 0
• B) null hypothesis should state μ1 - μ2 > 0
• C) alternative hypothesis should state μ1 - μ2 > 0
• D) alternative hypothesis should state μ1 - μ2 < 0

---

Definitions:

M1

A category of the money supply that includes all physical money like coins and currency, as well as checkable deposits and traveler's checks.

M2

A gauge of currency circulation that covers physical money, funds in checking accounts, and assets easily turned into cash.

FDIC

The Federal Deposit Insurance Corporation, a U.S. government agency that insures deposits at banks and thrifts to maintain public confidence and encourage stability in the financial system.

Time Deposits

Bank deposits that cannot be withdrawn for a certain term or period of time without incurring a penalty.