For Large Sample Cases, in a Two-Tailed Test of the Difference

question 14

Multiple Choice

For large sample cases, in a two-tailed test of the difference between two population means (significance level = 5%) , the decision rule is:

• A)Reject the null hypothesis if the test statistic, z_stat, is either less than −1.96 or greater than +1.96.
• B)Reject the null hypothesis if the test statistic, z_stat, is either greater than −1.96 or less than +1.96.
• C)Reject the null hypothesis if the p-value is greater than .05.
• D)Reject the null hypothesis if the test statistic, t_stat, is either less than −1.022 or greater than +1.022.

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Definitions:

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The degree of variation in the price of a financial instrument over a certain period, indicating the risk or stability of the asset.

Treasury Notes

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Commercial Paper

A short-term, unsecured promissory note issued by corporations with high credit ratings to fund immediate operational needs.