Each Person in a Random Sample of University Students Was

question 35

Multiple Choice

Each person in a random sample of university students was asked which of five flavors of ice cream he or she preferred. The resulting data was used to test the null hypothesis . The P-value associated with this test was 0.067. If a significance level of 0.05 is used for the test, which of the following is an appropriate conclusion? ​

• A)Fail to reject , there is convincing evidence that there is no preference for one flavor of ice cream over another.
• B)Fail to reject , there is not convincing evidence that there is a preference for one flavor of ice cream over another.
• C)Reject , there is convincing evidence that there is no preference for one flavor of ice cream over another.
• D)Reject , there is convincing evidence that there is a preference for one flavor of ice cream over another.
• E)Based on the information given, it is not possible to determine whether should be rejected or not.

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Definitions:

MCC

This abbreviation could stand for multiple concepts depending on the context; without further context, it's difficult to provide a specific definition.

IOS

Investment opportunity schedule. A schedule of capital budgeting projects arranged in decreasing order of IRR.

WACC

Weighted Average Cost of Capital; it represents a firm's blended cost of capital across all sources, including both debt and equity.

MCC Schedule

Marginal cost of capital schedule. A plot of the WACC (weighted average cost of capital) against the total amount of capital to be raised in a planning period. The MCC rises as more capital is raised and the costs of individual components experience step function increases.