An Analyst Plans to Test Whether the Standard Deviation for the Time

question 57

Multiple Choice

An analyst plans to test whether the standard deviation for the time it takes bank tellers to provide service to customers exceeds the standard of 1.5 minutes.The correct null and alternative hypotheses for this test are:

• A)H₀ : σ > 1.5
• H_A : σ ≥ 1.5
• B)H₀ : σ ≤ 1.5
• H_A : σ > 1.5
• C)H₀ : σ² ≤ 2.25
• H_A : σ² > 2.25
• D)H₀ : σ² > 2.25

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Definitions:

Rule 10b-5

A regulation under the U.S. Securities Exchange Act of 1934, designed to prevent fraud in the securities market.

Securities Act of 1934

U.S. federal law focusing on the regulation of the secondary trading of securities (stocks, bonds, and debentures) in the United States.

Scienter

A legal term used to refer to a party's knowledge of the wrongfulness or fraudulent nature of their actions.

Williams Act

A subset of the Securities Exchange Act of 1934, regulating tender offers and requiring disclosure of information by anyone seeking to acquire more than 5% of a company's securities.