Exhibit 11-6

question 10

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 4-6.At α = 0.10,is the analyst's claim supported by the data?

• A)No,the p-value < α = 0.10.
• B)Yes,the p-value > α = 0.10.
• C)No,the p-value > α = 0.10.
• D)Yes,the p-value < α = 0.10.

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Definitions:

Regressive

Pertaining to a tax system in which the tax rate decreases as the taxable amount increases, commonly considered less fair because it imposes a heavier burden relative to income on those with less.

Progressive

Pertaining to a taxation system in which the tax rate increases as the taxable amount increases, imposing a higher percentage rate on the wealthy to ensure equity.

Consumption Tax

A tax on the purchase of goods or services, levied at the point of sale, designed to tax spending rather than income or savings.

Encourage Consumption

Measures or strategies aimed at increasing consumer spending and demand for goods and services.