Two Researchers (A and B)compute a One-Sample T Test

question 74

Multiple Choice

Two researchers (A and B) compute a one-sample t test.For both tests,the mean difference between the sample and value stated in the null hypothesis is 5,but the standard error is smaller for Researcher A.Which test is more likely to result in a decision to reject the null hypothesis?

• A) Researcher A.
• B) Researcher B.
• C) The likelihood is the same for both researchers.
• D) There is not enough information to answer this question.

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Definitions:

Discount Factor

A multiplier used in financial calculations to determine the present value of future cash flows or payments.

Profitability Index

A financial metric comparing the present value of future cash flows generated by a project to its initial investment cost, used in capital budgeting.

Investment Projects

Initiatives undertaken by a business or organization to invest in assets or resources with the expectation of generating future profit.

Discount Rate

The interest rate used to discount future cash flows of a financial instrument to present value.