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:

Basis Of Reason

The fundamental principles or underlying logic that guide reasoning or argumentation.

Critical Thought

The intellectually disciplined process of actively and skillfully conceptualizing, applying, analyzing, synthesizing, and evaluating information.

Ignore Emotions

To deliberately pay no attention to or disregard one's feelings or the feelings of others.

Superior

Higher in rank, quality, or importance; above average or better than others.