You Are to Test the Following Hypotheses: H₀: µ $\alpha$ < P-Value
B)Reject the Null Hypothesis Since T_stat > T_c
C)not

question 54

Multiple Choice

You are to test the following hypotheses: H₀: µ < 900
H_a: µ > 900
A sample of size 25 produces a sample mean of 926, with a standard deviation of 50.The p-value for this test is .0079.If the significance level set for the test is .01, we should

• A)Reject the null hypothesis since \(\alpha\) < p-value.
• B)Reject the null hypothesis since t_stat > t_c
• C)not Reject the null hypothesis since \(\alpha\)> p-value
• D)not Reject the null hypothesis since t_stat > t_c
• E)Accept the null hypothesis since p-value <\(\alpha\)

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Definitions:

Share Price

The price of a single share of a number of saleable stocks of a company, derivative, or other financial asset.

Plowback Ratio

Plowback Ratio, also known as the retention ratio, is the proportion of earnings that a company retains and reinvests in its operations, rather than distributing as dividends.

Expected ROE

The anticipated return on equity, which measures a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested.

Market-capitalization Rate

The discount rate derived from the market capitalization of a company, used to determine the present value of its future earnings.