A Two-Tailed Test Is Conducted at the 5% Significance Level

question 44

Multiple Choice

A two-tailed test is conducted at the 5% significance level. What is the right tail percentile required to reject the null hypothesis?

• A) 10%
• B) 5%
• C) 2.5%
• D) 95%
• E) 97.5%

---

Definitions:

Holder in Due Course

A party in possession of a negotiable instrument, such as a check or promissory note, acquired in good faith and thus protected against many defenses.

Negotiable Instrument

An official document certifying the payment of a particular sum of cash, either to be paid on demand or at an agreed-upon time, with the payer's name mentioned in the document.

Good Faith

The honest intention to act without taking an unfair advantage over another party, typically implied in agreements and transactions to ensure fairness and integrity.

Defects

Imperfections or faults in a product or structure that may affect its usability, safety, or function.