State the Proper Forms of Hypotheses for Two-Sample Hypothesis Tests

question 28

Multiple Choice

State the proper forms of hypotheses for two-sample hypothesis tests.
-For a lower-tail test, the p-value in the output from an Excel tool:

• A) is correct if the test-statistic is negative.
• B) is the difference from 1.0 if the test-statistic is negative.
• C) is correct if the test-statistic is zero.
• D) is correct if the test-statistic is positive.

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Definitions:

Interest Rate Spread

The difference between the interest rates of two different financial instruments, often highlighting the comparative risk or return.

Insurance Premium

The amount that individuals or organizations must pay for their insurance policies, covering a wide range of risks.

Risk Premium

The additional return expected by an investor for holding a risky asset rather than a risk-free asset, compensating for the extra risk.

Human Capital

The economic value of a worker's experience and skills, including factors like education, training, intelligence, skills, health, and other things employers value.