An Entomologist Writes an Article in a Scientific Journal Which $\mathrm { H } _ { 0 } : \mathrm { p } < 0.0016$

question 2

Multiple Choice

An entomologist writes an article in a scientific journal which claims that fewer than 16 in ten thousand male fireflies are unable to produce light due to a genetic mutation. Use the parameter p, the true proportion of
Fireflies unable to produce light.

• A) \(\mathrm { H } _ { 0 } : \mathrm { p } < 0.0016\)
• \(\mathrm { H } _ { 1 } : \mathrm { p } \geq 0.0016\)
• B) \(\mathrm { H } _ { 0 } : \mathrm { p } > 0.0016\)
• \(\mathrm { H } _ { 1 } : \mathrm { p } \leq 0.0016\)
• C) \(\mathrm { H } _ { 0 } : \mathrm { p } = 0.0016\)
• \(\mathrm { H } _ { 1 } : \mathrm { p } < 0.0016\)
• D) \(\mathrm { H } _ { 0 } : \mathrm { p } = 0.0016\)
• \(\mathrm { H } _ { 1 } : \mathrm { p } > 0.0016\)

---

Definitions:

Risk Premium

The risk premium is the excess return that an investor requires for holding a risky asset over a risk-free asset, compensating for the risk of the investment.

Risk-free Rate

The theoretical rate of return on an investment with zero risk, often represented by government bonds.

Risk Premium

The extra return above the risk-free rate that investors demand for choosing to invest in a riskier asset.

Well-diversified Portfolio

An investment portfolio strategically crafted to include a variety of asset classes in order to minimize risk.