The Following Are the Competing Hypotheses and the Relevant Summary

question 85

Multiple Choice

The following are the competing hypotheses and the relevant summary statistics: Η₀: / ≤ 1, Η_A: / > 1. The p-value associated with the value of the test statistic is 0.3692. At the 5% significance level, which of the following conclusions is correct?

• A) We reject the null hypothesis and conclude the first variance is larger than the second.
• B) We do not reject the null hypothesis and conclude the first variance is larger than the second.
• C) We reject the null hypothesis and cannot conclude the first variance is larger than the second.
• D) We do not reject the null hypothesis and cannot conclude the first variance is larger than the second.

---

Definitions:

Opportunity Cost

The cost of forgoing the next best alternative when making a decision, representing the benefits one misses out on when choosing one option over another.

Point B

A specific position or location on a graph or diagram, used often in economic models to denote a particular outcome or situation.

Point A

A specific position or location often referenced in economic models or graphs to illustrate a particular scenario or outcome.

Opportunity Cost

The budgetary repercussion of passing on the subsequent top pick when decisions are taken.