Determine the Decision Criterion for Rejecting the Null Hypothesis in the Given

question 31

Multiple Choice

Determine the decision criterion for rejecting the null hypothesis in the given hypothesis test; i.e., describe the values of the test statistic that would result in rejection of the null hypothesis. Suppose you wish to test the claim that $\mu _ { d }$ the mean value of the differences d for a population of paired data, is greater than 0 . Given a sample of n=15 and a significance level of $\alpha = 0.01$ what criterion would be used for rejecting the null hypothesis?

• A) Reject null hypothesis if test statistic <2.624 .
• B) Reject null hypothesis if test statistic >2.602 .
• C) Reject null hypothesis if test statistic >2.624 .
• D) Reject null hypothesis if test statistic >2.977 or <-2.977 .

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Definitions:

Dividend Payment Claims

Rights of shareholders to receive a portion of a company's earnings distributed as dividends.

Dividend Growth Model

A model for valuing a stock by assuming constant, usually non-zero growth in dividends per share.

Capital Gains Yield

The increase in the price of an investment, calculated as the percentage difference between the current price and the purchase price.