A Manager Is Interested in Testing Whether Three Populations of Interest

question 125

Multiple Choice

A manager is interested in testing whether three populations of interest have equal population means.Simple random samples of size 10 were selected from each population.The following ANOVA table and related statistics were computed: Conduct the appropriate test of the null hypothesis assuming that the populations have equal variances and the populations are normally distributed.Use a 0.05 level of significance.

• A)Using the F test approach,because F = 3.354 < critical F = 9.84,we reject the null hypothesis and conclude that the population means are not all equal.
• B)Using the F test approach,because F = 3.354 < critical F = 9.84,we do not reject the null hypothesis and conclude that the population means are all equal.
• C)Using the F test approach,because F = 9.84 > critical F = 3.35,we reject the null hypothesis and conclude that the population means are not all equal.
• D)Using the F test approach,because F = 9.84 > critical F = 3.35,we do not reject the null hypothesis and conclude that the population means are all equal.

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Definitions:

Diversified Investor

An investor who spreads their investment across various assets to minimize risk.

Risk Premium

The additional return an investor demands for taking on a higher risk compared to a risk-free investment.

Non-diversifiable Risk

The part of an investment's risk that cannot be eliminated through diversification, pertaining to wider market or economic factors.

Systematic Risk

The peril present throughout an entire market or a portion of the market that cannot be alleviated by spreading investments.