A Genetic Theory Says That a Cross Between Two Pink

question 1

Multiple Choice

A genetic theory says that a cross between two pink flowering plants will produce red flowering plants a proportion p = 0.25 of the time. To test the theory, 100 crosses are made and 31 of them produce a red flowering plant. Is this evidence that the theory is wrong?
What is the value of the standardized test statistic for this significance test?

• A) -1.297.
• B) 1.297.
• C) -1.386.
• D) 1.386.

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Definitions:

Risk

The degree of uncertainty associated with the return on an investment, often linked to the potential for losing some or all of the original investment.

Total Return

Total return is the full return on an investment over a specific time period, including capital gains and dividends, expressed as a percentage of the initial investment cost.

Information Surprises

Events or news that were unexpected by market participants, often leading to sudden changes in asset prices.

Nondiversifiable Risk

The portion of investment risk that cannot be eliminated through diversification, attributed to market factors affecting all investments.