When the Necessary Conditions Are Met, a Two-Tailed Test Is

question 182

Multiple Choice

When the necessary conditions are met, a two-tailed test is being conducted to test the difference between two population means, but your statistical software provides only a one-tail area of .036 as part of its output. The p-value for this test will be:

• A) 0.018
• B) 0.009
• C) 0.072
• D) 0.928
• E) 0.964

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Definitions:

Book Income Tax Expense

The amount of income tax expense that is reported on the financial statements, which may differ from the actual tax paid due to differences between accounting and tax rules.

Temporary Difference

A difference between the carrying amount of an asset or liability in the balance sheet and its tax base, which will result in taxable or deductible amounts in the future.

Book Income

The income of a business as reported in its financial statements, using the accounting methods and standards specified by the relevant authority.

Deferred Tax Liability

A tax obligation that a company owes but is not required to pay until a future date.