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

question 121

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 $\mu _ { \mathrm { d } }$ , the mean value of the differences d for a population of paired data, is greater than 0 . Given a sample of $\mathrm { n } = 15$ 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 \(> 2.602\).
• B) Reject null hypothesis if test statistic \(> 2.977\) or \(< - 2.977\).
• C) Reject null hypothesis if test statistic \(< 2.624\).
• D) Reject null hypothesis if test statistic \(> 2.624\).

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Definitions:

Preferred Stock

A type of stock that provides a specific dividend that is paid before any dividends are paid to common stockholders, often with no voting rights.

Zero Growth

refers to a situation where a company or economy is not experiencing any increase in its output, sales, or other financial indicators over a period.

Cumulative Dividend

A feature of preferred stock that mandates the payment of any missed dividends before dividends can be distributed to other shareholders.

Arrearage

A legal term for the part of a debt that is overdue after missing one or more required payments.