In a Hypothesis Test for the Population Variance,the Hypotheses Are $\sigma$

question 134

Multiple Choice

In a hypothesis test for the population variance,the hypotheses are H₀: $\sigma$ ² = 30 vs.H₁: $\sigma$ ² < 30.If the sample size is 20 and the test is being carried out at the 5% level of significance,the null hypothesis is rejected if:

• A) \(\chi\)² < 30.144.
• B) \(\chi\)² > 10.851.
• C) \(\chi\)² < 10.117.
• D) \(\chi\)² > 31.410.

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Definitions:

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The return a company theoretically pays to its equity investors to compensate them for the risk of investing in the company's stock.

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The portion of net income not distributed as dividends but retained by the company to reinvest in its core business or to pay debt.

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Determining the Weighted Average Cost of Capital, a measure of a firm's cost of capital in which each category of capital is proportionately weighted.