A University Wants to Increase Its Retention Rate of 4 $\pi$

question 14

Multiple Choice

A university wants to increase its retention rate of 4% for graduating students from the previous year. The null and alternative hypotheses to test if retention rate did increase will be?

• A) H₀: \(\pi\) \(\le\)0.04; H_a: \(\pi\) > 0.04
• B) H₀: \(\pi\)\(≥ \) 0.04; H_a: \(\pi\)< 0.04
• C) H₀: \(\pi\) = 0.04; H_a: \(\pi\) \(\neq\) 0.04
• D) H₀: \(\pi\) > 0.04; H_a: \(\pi\) \(\le\) 0.04
• E) H₀: \(\pi\) \(\neq\)0.04; H_a: \(\pi\)= 0.04

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Definitions:

Call Price

The price at which a callable bond or security can be redeemed by the issuer before its maturity.

Negative Covenants

Provisions in a loan agreement that restrict certain actions of the borrower to protect the lender's interests.

Bond Indenture

A legal contract detailing the terms and conditions under which a bond is issued, including interest rates, maturity dates, and issuer obligations.

Sinking Fund

A fund set aside by a corporation for the purpose of repaying debt or buying back shares, to ensure financial stability and investor confidence.