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

question 29

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
-A farmer has decided to use a new additive to grow his crops. He divided his farm into 10 plots and kept records of the corn yield (in bushels) before and after using the additive. The results are shown below. $\begin{array} { l l l l l l l l l l l } \text { Plot: } & 1 & 2 & 3 & 4 & 5 & 6 & 7 & 8 & 9 & 10 \\\hline \text { Before } & 9 & 9 & 8 & 7 & 6 & 8 & 5 & 9 & 10 & 11 \\ \text { After } & 10 & 9 & 9 & 8 & 7 & 10 & 6 & 10 & 10 & 12 \end{array}$
You wish to test the following hypothesis at the 1 percent level of significance.
$\mathrm { H } _ { 0 } : \mu _ { \mathrm { D } } = 0$ against $\mathrm { H } _ { 1 } : \mu _ { \mathrm { D } } \neq 0$
What decision rule would you use?

• A) Reject \(\mathrm { H } _ { 0 }\) if test statistic is less than \(- 3.250\).
• B) Reject \(\mathrm { H } _ { 0 }\) if test statistic is greater than \(3.250\).
• C) Reject \(\mathrm { H } _ { 0 }\) if test statistic is less than \(- 3.250\) or greater than \(3.250\).
• D) Reject \(\mathrm { H } _ { 0 }\) if test statistic is greater than \(- 3.250\) or less than \(3.250\).

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Definitions:

Paid-In Capital in Excess of Par

The amount of capital received from investors for stock, above its par value, also known as additional paid-in capital.

Preferred Stock

A type of stock that gives holders priority over common stockholders in terms of dividend payments and claims on assets in the event of liquidation.

Stock Dividend

A form of dividend payment made by a company to its shareholders in the form of additional shares, rather than cash.

Paid-In Capital

The capital received by a company from investors in exchange for stock, representing funds raised beyond the par value of the shares issued.