When Using the Confidence Interval Approach for a Two-Tailed Test

question 52

Multiple Choice

When using the confidence interval approach for a two-tailed test, which of the following is true?

• A)the rejection region is in the upper tail of the distribution
• B)if the confidence interval contains the hypothesized value, then reject H₀
• C)if the confidence interval contains the hypothesized value, do not reject the H₀
• D)use the F distribution
• E)none of the above

---

Definitions:

Goal Incongruence

A situation where the objectives of different stakeholders or parts of an organization conflict with each other, potentially leading to inefficiencies or counterproductive actions.

Cost Target

Cost target is the budgeted or desired cost of manufacturing a product or executing a project, aimed at ensuring competitiveness and profitability.

Responsibility Accounting

An accounting system focused on controlling costs and evaluating performance by assigning responsibility to individual managers or departments.

Benchmarks

Benchmarks are standard points of reference against which performance, quality, or value can be measured, often used for comparison in business, finance, and industry.