Exhibit 11-6

question 12

Multiple Choice

Exhibit 11-6.A financial analyst examines the performance of two mutual funds and claims that the variances of the annual returns for the bond funds differ.To support his claim,he collects data on the annual returns (in percent) for the years 2001 through 2010.The analyst assumes that the annual returns for the two emerging market bond funds are normally distributed.Here are some relevant summary statistics. Refer to Exhibit 11-6.For the competing hypotheses: since ,approximate the p-value for the test.

• A)Less than 0.01
• B)Between 0.01 and 0.025
• C)Between 0.02 and 0.05
• D)Between 0.05 and 0.10

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Definitions:

Relevant Range

The range of activity within which the assumptions about fixed costs and variable unit costs are valid for purposes of budgeting and decision-making.

Direct Costs

Expenses that can be directly traced to the production of specific goods or services, such as raw materials and labor.

Period Costs

Expenses that are not directly associated with the production process and are expensed in the period they are incurred.

Financial Reporting

The process of producing statements that disclose an organization's financial status to management, investors, and regulators.