Alternative Hypothesis

question 15

Multiple Choice

Alternative hypothesis:

• A)is the value of a variable that is estimated from a sample.
• B)is the true value of a variable.
• C)states that there is a relationship between two variables.
• D)is the actual value of a variable, which can only be known by collecting data from every member of the relevant population.
• E)is notated as H 0 .

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Definitions:

Treasury Bills

Short-term government securities issued at a discount from the face value and pay no interest, maturing in one year or less.

Small-company Stocks

Equity investments in companies with smaller market capitalization, often characterized by higher volatility and potential for growth.

Efficient Market

A financial market theory suggesting that asset prices fully reflect all available information at any given time, ensuring that securities are appropriately priced and investors cannot consistently achieve higher-than-average returns.

NPV

Net Present Value, a calculation to determine the present value of future cash flows minus initial investment, used to assess the profitability of a project.