Suppose We Wish to Test the Hypothesis That an Internship

question 70

Multiple Choice

Suppose we wish to test the hypothesis that an internship program allows its interns to earn $2,750 per semester and let us assume that this hypothesis is, in fact, true. Which of the following best illustrates the logic of hypothesis testing at the 99% confidence level?

• A) From among 100 samples, 99 percent of them would generate means that fall outside + or - 2.58 z scores.
• B) From among 99 samples, 100 percent of them would generate means that fall within + or - 2.58 z scores.
• C) From among 100 samples, 1 percent of them would generate means that fall outside + or - 2.58 z scores.
• D) From among 100 samples, 1 percent of them would generate means that fall outside + or - 1.96 z scores.
• E) From among 95 samples, 1 percent of them would generate means that fall outside + or - 1.96 z scores.