You Are to Test the Following Hypotheses: H₀: µ = $\alpha$

question 2

Multiple Choice

You are to test the following hypotheses: H₀: µ = 650
H_a: µ ≠ 650
A sample of size 20 produces a sample mean of 672, with a standard deviation of 42.The p-value for this two-tailed test is .0302.If the significance level set for the test is .05, we should

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

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Definitions:

Von Neumann-Morgenstern

A theory of expected utility that serves as a foundational framework in the field of game theory, describing strategies for rational decision-making under uncertainty.

Expected Utility

The sum of the utilities associated with all possible outcomes, weighted by the probability of each outcome occurring.

Probability

The quantification of the probability that an event will happen, represented by a number ranging from 0 to 1, with 0 signifying an impossible event and 1 signifying a certain event.

Income

The money received by a person or organization, typically on a regular basis, for work, through investments, or from other sources.