Are the Following Statements and a Valid Pair

question 68

Multiple Choice

Are the following statements and a valid pair of null and alternative hypothesis?

• A) No, the null hypothesis should not state an equality.
• B) No, cannot be a parameter
• C) Yes, the null hypothesis specifies an equality and the alternative specifies a difference.
• D) Yes, the alternative hypothesis specifies an equality and the null hypothesis specifies a difference.

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Definitions:

Interest Rates

The proportion of interest a borrower is charged for loaned funds.

Bank Credit

The total amount of borrowing capacity available to an individual or entity from a bank or other financial institutions, enabling the borrower to make purchases or investments.

Reserve Requirement

The minimum fraction of customer deposits and notes that each commercial bank must hold as reserves rather than lending out, set by the central bank.

Demand Deposits

Bank accounts from which money can be withdrawn at any time without any notice to the institution.