We Have Created a 95% Confidence Interval for the True

question 49

Multiple Choice

We have created a 95% confidence interval for the true proportion with the result (0.10, 0.15) . What conclusion will we make if we test H0: p = 0.16 versus HA: p ≠ 0.16 at α = 0.05?

• A) Reject the null hypothesis.
• B) Accept the null hypothesis.
• C) Fail to reject the null hypothesis.
• D) Reject the alternative hypothesis.
• E) Support the null hypothesis and accept the alternative hypothesis.

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Definitions:

Treynor Measure

A performance metric for determining how well an investment compensates the investor for taking a particular level of risk, accounting for systematic risk.

Standard Deviation

A statistical measure that represents the dispersion or variance in a set of data points, used in finance to measure the volatility of investment returns.

Beta

Beta is a measure of an investment's volatility and systemic risk compared to the overall market.

S&P 500 Index

The S&P 500 Index is a market-capitalization-weighted index of 500 of the largest publicly traded companies in the U.S., widely regarded as one of the best indicators of U.S. stock market performance.