A New Study Has Found That, on Average, 6- to 12-Year-Old

question 38

Multiple Choice

A new study has found that, on average, 6- to 12-year-old children are spending less time on household chores today compared to 1981 levels. Suppose two samples representative of study's results report the following summary statistics for the two periods. Which of the following are the appropriate competing hypotheses?

• A) H₀: µ₁ - µ₂ ≤ 0, H_A: µ₁ - µ₂ > 0
• B) H₀: µ₁ - µ₂ ≥ 0, H_A: µ₁ - µ₂ < 0
• C) H₀: µ₁ - µ₂ > 0, H_A: µ₁ - µ₂ ≤ 0
• D) H₀: µ₁ - µ₂ = 0, H_A: µ₁ - µ₂ ≠ 0

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Definitions:

Maturity Value

The total amount payable to an investor at the end of a fixed-term investment, including principal and interest.

360-Day Year

A conventional method in finance for simplifying interest calculations, assuming a year has 360 days.

Finance Company

A business that provides loans to individuals and companies, aside from traditional banking institutions, often specializing in certain types of loans.

Discounted

refers to a price that has been reduced from the original or list price, often to encourage sales or clear inventory.