At One School, the Average Amount of Time That Tenth-Graders $\begin{array}{l}\mathrm{H}_{0}: \mu=21.6 \text { hours } \\\mathrm{H}_{\mathrm{a}}: \mu<21.6 \text { hours }\end{array}$

question 1

Multiple Choice

At one school, the average amount of time that tenth-graders spend watching television each week is 21.6 hours. The principal introduces a campaign to encourage the students to watch less television. One year later, the principal wants to perform a hypothesis test to determine whether the average
Amount of time spent watching television per week has decreased. The hypotheses are:
$\begin{array}{l}\mathrm{H}_{0}: \mu=21.6 \text { hours } \\\mathrm{H}_{\mathrm{a}}: \mu<21.6 \text { hours }\end{array}$
Explain the meaning of a correct decision.

• A) Failing to reject the hypothesis that \( \mu=21.6 \) hours when in fact \( \mu=21.6 \) hours OR concluding that \( \mu<21.6 \) hours when in fact \( \mu<21.6 \) hours
• B) Concluding that \( \mu>21.6 \) hours when in fact \( \mu<21.6 \) hours
• C) Failing to reject the hypothesis that \( \mu=21.6 \) hours when in fact \( \mu<21.6 \) hours
• D) Concluding that \( \mu<21.6 \) hours when in fact \( \mu=21.6 \) hours

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Definitions:

Price/Earnings Ratio

A ratio for valuing a company that measures its current share price relative to its per-share earnings.

Equity-Financed

Refers to the method of funding a company's operations, expansion, or projects using the capital raised through the sale of equity, rather than using debt.

Total Earnings

The sum of all income and revenue generated by a business or individual within a specific period.

Shares Outstanding

Refers to all shares currently owned by shareholders, company insiders, and investors in the public domain, representing ownership in a company.