A Researcher Is Interested in Comparing the Usage of Bank

question 30

Multiple Choice

A researcher is interested in comparing the usage of bank debit cards by consumers in rural (r) and urban (u) areas.Each year for the past five years,she has surveyed 500 individuals (one-half urban,one-half rural) randomly selected from across the United States.She is specifically interested in any differences that may exist between the two groups with regard to usage.The results of the current study indicate that people in urban areas use bank debit cards 12 times per month on average,while those in rural areas use bank cards 10 times per month on average.Given that the critical value that the test statistic is to be compared with is equal to 1.645 at a 90% significance level,which of the following statements are true?

• A)The researcher should reject the null hypothesis at the 90% significance level.
• B)The researcher might be able to reject the null hypothesis at the 95% level of significance.
• C)The researcher cannot reject the null hypothesis at this significance level.
• D)The researcher has provided evidence that people in urban areas use bank debit cards more than people in rural areas.
• E)More information is needed before a decision about the null hypothesis can be made.

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Definitions:

Significance Level

The probability of rejecting the null hypothesis when it is actually true, often denoted by alpha (α), used as a threshold for determining the statistical significance of a test result.

Significant Level

Significant level is another term for significance level, denoting the probability of rejecting the null hypothesis in statistical hypothesis testing when it is true.

Primary Issue

The initial offering of shares to the public by a company or the first time a stock is listed on the stock market.

Seat Belts

Safety devices designed to secure the occupants of a vehicle against harmful movement that may result during a collision or a sudden stop.