The School's Newspaper Reported That the Proportion of Students Majoring $\ge$

question 114

Multiple Choice

The school's newspaper reported that the proportion of students majoring in business is at least 30%. You plan on taking a sample to test the newspaper's claim. The correct set of hypotheses is

• A)H₀: p < 0.30 H_a: p \(\ge\) 0.30
• B)H₀: p \(\le\) 0.30 H_a: p > 0.30
• C)H₀: p > 0.30 H_a: p < 0.30
• D)H₀: p > 0.30 H_a: p \(\le\) 0.30

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Definitions:

Weak Form Efficiency

A form of market efficiency where all past trading information is already reflected in stock prices, implying that technical analysis cannot yield consistent excess returns.

Market Efficiency

A concept that describes the extent to which market prices fully reflect all available information, making it impossible to consistently achieve higher-than-normal returns.

Well-Organized Markets

Financial markets that are structured in a manner to ensure transparency, fair trading practices, and efficiency.

Semi-Strong Efficiency

A form of market efficiency where asset prices fully reflect all publicly available information.