Consider the Expected Returns (In Percent) from the Two Investment

question 82

Multiple Choice

Consider the expected returns (in percent) from the two investment options. Beth claims that the variances of the returns for the two investments differ. Use the following data to arrive at the results. Test Beth's claim at the 5% significance level. Which of the following is the correct conclusion?

• A) p-value = 0.7127 > α = 0.05; Beth's claim is correct.
• B) p-value = 0.7127 > α = 0.05; Beth's claim is wrong.
• C) p-value = 0.7127 < α = 0.05; Beth's claim is wrong.
• D) p-value = 0.7127 < α = 0.05; Beth's claim is correct.

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Definitions:

Poisson Random Variable

A variable that represents the number of events occurring in a fixed interval of time or space, assuming these events occur with a known constant mean rate and independently of the time since the last event.

Poisson Distribution

A discrete probability distribution that expresses the probability of a given number of events occurring in a fixed interval of time or space.

Poisson Distribution

A probability distribution that expresses the probability of a given number of events occurring in a fixed interval of time or space if these events occur with a known constant rate and independently of the time since the last event.

Gas Station

A gas station is a facility that sells fuel and engine lubricants for motor vehicles.