Your Company Is Evaluating Two Cloud-Based, Secured Data Storage Services $\sigma$

question 38

Multiple Choice

Your company is evaluating two cloud-based, secured data storage services. "Pie in the Sky," the newer service, claims its uploading and downloading speeds are faster than the older service, "Cloudy but Steady Skies." You need to make a decision based on published access times for both services at different times and for varying file sizes. Your alternative hypothesis is ___.

• A) \(\sigma\)₁² < \(\sigma\)₂²
• B) \(\mu\)₁ - \(\mu\)₂ < 0
• C) π₁ - π₂ = 0
• D)\(\mu\)₁ - \(\mu\)₂ = 0
• E) s₁ - s₂ = 0

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Definitions:

Residual Standard Deviation

A statistical measure that quantifies the amount by which an outcome differs from the prediction of a model.

Beta

A measure of a security’s volatility in comparison to the overall market, indicating its relative risk.

Total Abnormal Return

The difference in stock or portfolio returns relative to a benchmark or expected return, often analyzed to assess the impact of events or news on stock performance.

Bonds

Debt securities issued by corporations or governments to raise funds, promising to pay back the face value on maturity along with periodic interest payments.