State the Proper Forms of Hypotheses for Two-Sample Hypothesis Tests

question 28

Multiple Choice

State the proper forms of hypotheses for two-sample hypothesis tests.
-For a lower-tail test, the p-value in the output from an Excel tool:

• A) is correct if the test-statistic is negative.
• B) is the difference from 1.0 if the test-statistic is negative.
• C) is correct if the test-statistic is zero.
• D) is correct if the test-statistic is positive.

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Definitions:

Margin Of Safety

The difference between actual sales and break-even sales, indicating the amount by which sales can drop before the business incurs a loss.

Contribution Margin Ratio

A measure of the profitability of a product, defined as the difference between the sales price and variable costs, expressed as a percentage of sales price.

Operating Income

EBIT, or earnings before interest and taxes, denotes the income a business generates from its fundamental activities.

Margin Of Safety

The difference between actual sales and break-even sales, providing a cushion against which performance can decline before a business incurs a loss.