Consider a Situation in Which Chris Predicts That an Impending

question 49

Multiple Choice

Consider a situation in which Chris predicts that an impending drainage connection will alter the number of fish in a set of six small lakes. She uses a large net (a seine) and counts the number of fish and obtains the values shown. Based on the t-test statistic, and using your table of critical t-values, which of the following P-value ranges matches the one for the t-value she obtains?
?
Number of fish caught in six seines before and after drainage connection.

$\begin{array}{lll}\underline {\text {Vial } }&\underline {\text { Before } }&\underline {\text { After } }\\1 & 24 & 20 \\2 & 35 & 31 \\3 & 64 & 59 \\4 & 51 & 52 \\5 & 25 & 28 \\6 & 48 & 39\end{array}$

• A) 0.05 < p
• B) 0.02 < p < 0.05
• C) 0.01 < p < 0.02
• D) p < 0.01

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Definitions:

Abnormal Earnings

Profits that exceed or fall short of the average expected earnings by a company over a specific period, often highlighting unusual events or circumstances.

Equity Cost

The direct costs associated with issuing new equity, such as underwriting fees, or an investor's required rate of return for providing capital to a firm.

Transitory Components

Elements affecting financial statements or economic conditions that are expected to be temporary and not indicative of ongoing future performance.

Value-Irrelevant

Financial information or factors that do not impact an investor's or decision maker's assessment of a company's value.