Assume That You Are Testing the Difference in the Means

question 62

Multiple Choice

Assume that you are testing the difference in the means of two independent populations at the 0.05 level of significance.The null hypothesis is: H₀ : μ_A - μ_β ≥ 0 and you have found the test statistic is What should you conclude?

• A)The mean of pop.A is greater than the mean of pop.B because p-value < α.
• B)The mean of pop.A is greater than the mean of pop.B because p-value > α.
• C)There is no significant difference in the two means because p-value > α.
• D)The mean of pop.B is greater than the mean of pop.A because p-value < α.

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Definitions:

Annual Discount Rate

The rate used to discount future cash flows to the present value, reflecting the time value of money and investment risk.

Receiving Annually

Refers to receiving a particular sum or type of benefit every year.

Perpetually

Continuing forever or for an indefinite period without anticipated termination.

Cash Flow

The total sum of cash and cash-equivalents that flows in and out of a company.