An Analyst Conducts a Hypothesis Test to Check Whether the Mean

question 51

Multiple Choice

An analyst conducts a hypothesis test to check whether the mean return for a particular fund differs from 10%.He assumes that returns are normally distributed and sets up the following competing hypotheses: Over the past 10 years the fund has had an average annual return of 13.4% with a standard deviation of 2.6%.The value of the test statistic is 4.14 and the critical values at the 5% significance level are -2.262 and 2.262.The correct decision is to __________.

• A)Reject H₀;we can conclude that the mean differs from 10%
• B)Reject H₀;we cannot conclude that the mean differs from 10%
• C)Do not reject H₀;we can conclude that the mean differs from 10%
• D)Do not reject H₀;we cannot conclude that the mean differs from 10%

---

Definitions:

Static

Not changing or moving; often relates to static data in the context of legal technology.

ABA-Approved

Designation signifying that a product, service, or institution, such as a law school, meets the standards of the American Bar Association.

Paralegal Educational Program

A course of study designed to train individuals to assist professionals, particularly attorneys, in legal work.

ABA-Accredited

Refers to law schools that have received accreditation from the American Bar Association, indicating they meet certain standards of education.