A Hypothesis Regarding the Weight of Newborn Infants at a Community

question 3

Multiple Choice

A hypothesis regarding the weight of newborn infants at a community hospital is that the mean is 6.6 pounds. A sample of seven infants is randomly selected and their weights at birth are recorded as 9.0, 7.3, 6.0, 8.8, 6.8, 8.4, and 6.6 pounds. What is the decision for a statistical significant change in average weights at birth at the 5% level of significance?

• A) Fail to reject the null hypothesis and conclude the mean is 6.6 lb.
• B) Reject the null hypothesis and conclude the mean is higher than 6.6 lb.
• C) Reject the null hypothesis and conclude the mean is lower than 6.6 lb.
• D) Cannot calculate because population standard deviation is unknown.

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Definitions:

Risk-free Asset

A financial instrument that is considered to have no risk of financial loss, typically issued by a government.

Sharpe Measure

A method to evaluate the risk-adjusted return of an investment, comparing portfolio excess return to the standard deviation of the portfolio.

Excess Returns

The return on an investment above the return expected from risk-free investments or the market's benchmark.

Risk-free Asset

An investment that is assumed to have no risk of financial loss, often exemplified by government bonds.