Select an Appropriate Null Hypothesis for a One Way Analysis $H _ { 0 } : \mu _ { 1 } \neq \mu _ { 2 } \neq \mu _ { 3 } \neq \mu _ { 4 }$

question 42

Multiple Choice

Select an appropriate null hypothesis for a one way analysis of variance test.

• A) \(H _ { 0 } : \mu _ { 1 } \neq \mu _ { 2 } \neq \mu _ { 3 } \neq \mu _ { 4 }\)
• B) \(H _ { 0 } : \rho _ { 1 } \neq \rho _ { 2 } \neq \rho _ { 3 } \neq \rho _ { 4 }\)
• C) \(H _ { 0 } : \mu _ { 1 } = \mu _ { 2 } = \mu _ { 3 } = \mu _ { 4 }\)
• D) \(H _ { 0 } : \sigma _ { 1 } = \sigma _ { 2 } = \sigma _ { 3 } = \sigma _ { 4 }\)

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Definitions:

Security Market Line

A representation in the capital asset pricing model (CAPM) showing the relationship between expected return and systematic risk.

Risk Premium

The extra return expected by an investor for holding a risky asset instead of a risk-free asset.

Expected Return

The average return an investor anticipates on an investment which is uncertain, based on the probable returns.