A Decision Maker Wishes to Test the Following Null and Alternative

question 114

Multiple Choice

A decision maker wishes to test the following null and alternative hypotheses using an alpha level equal to 0.05: H₀ : μ₁ - μ₂ = 0
H_A : μ₁ - μ₂ ≠ 0
The population standard deviations are assumed to be known.After collecting the sample data,the test statistic is computed to be z = 1.78
Using the test statistic approach,what conclusion should be reached about the null hypothesis?

• A)Because z = 2.40 > 1.96,we reject the null hypothesis.
• B)Because z = 2.03 > 1.96,we reject the null hypothesis.
• C)Because z = 1.78 < 1.96,we do not reject the null hypothesis.
• D)Because z = 1.45 < 1.645,we do not reject the null hypothesis.

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Definitions:

Pre-acquisition Entries

Journal entries made to account for the assets and liabilities of a company before it is acquired by another entity.

Bonus Share Dividend

A reward to shareholders in the form of additional shares instead of cash, based on the number of shares already held, often issued from a company's accumulated reserves.

Pre-acquisition Retained Earnings

The accumulated profits of a company before it was acquired by another entity, which are not included in the calculation of goodwill.

Consolidation Worksheet

A document used in preparing consolidated financial statements that combines the financial data of parent and subsidiary companies.