In Conducting a Z-Test with a Nondirectional Alternative Hypothesis, We

question 17

Multiple Choice

In conducting a z-test with a nondirectional alternative hypothesis, we would

• A) use a two-tailed test.
• B) use a one-tailed test.
• C) not divide the alpha level in two.
• D) both "b" and "c" are correct.

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Definitions:

Total Return

Total return is the overall return on an investment, including dividends, capital gains, and interest, over a specific period.

Dividend Income

Income received from owning shares of a company, distributed out of the company's profits.

Capital Gain

The profit that results from a disposition of a capital asset, such as stock, bond, or real estate, where the sale price exceeds the purchase price.

Arithmetic Average Return

The simple mean of a series of returns over a period of time, calculated by summing the returns and dividing by the number of periods.