The Manager of an Online Shop Wants to Determine Whether

question 68

Multiple Choice

The manager of an online shop wants to determine whether the mean length of calling time of its customers is significantly more than 3 minutes. A random sample of 100 customers was taken. The average length of calling time in the sample was 3.1 minutes with a standard deviation of 0.5 minutes. At a 0.05 level of significance, it can be concluded that the mean of the population is:

• A) significantly greater than 3.
• B) not significantly greater than 3.
• C) significantly less than 3.
• D) not significantly different from 3.10.

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Definitions:

Warrants

Financial instruments that give the holder the right, but not the obligation, to buy shares of a stock at a specified price before the warrant expires.

Convertibles

Securities, such as bonds or preferred shares, that can be converted into a specified number of common shares at the holder's discretion.

Underlying Stock

An underlying stock refers to the equity security upon which derivative securities, such as options and futures, are based.

Ultimate Credit Risk

The risk of loss that occurs when an obligor (such as an issuer of a bond) defaults on its obligations, considering all measures of mitigation.