The Only Difference in the Procedure for Testing the Significance

question 70

Multiple Choice

The only difference in the procedure for testing the significance of the difference between two averages versus testing the significance between two percentages is:

• A) testing for averages looks for differences in a metric variable and percentages looks for differences in a categorical variable.
• B) testing averages require using the z value and percentages require using the p value.
• C) testing averages requires a 99% level of confidence whereas a level of 95% is sufficient for testing percentages.
• D) when testing for 95% level of confidence with averages the z value is 1.96 and for percentages it is 1.64.
• E) testing averages requires two more steps than the testing with percentages.

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Definitions:

Municipal Bond

A debt security issued by municipalities to finance public projects, often tax-exempt for investors.

Marginal Tax Bracket

The tax rate that applies to the last dollar of the taxpayer's income, indicating the percentage of tax applied to their highest level of income.

DAX

The Deutsche Aktienindex, a stock market index consisting of the 40 major German companies trading on the Frankfurt Stock Exchange.