Suppose the Average Reading Speed of 15 Randomly Selected Elementary

question 16

Multiple Choice

Suppose the average reading speed of 15 randomly selected elementary school students is 25,and the average reading speed of 15 randomly selected junior high school students is 31.You compute an independent samples t-test,and your is 3.12,which is statistically significant.Which of the following is the most appropriate conclusion?

• A)Increases in age cause increases in reading speed.
• B)We have evidence that older students tend to read faster.
• C)There is a proven relationship between age and reading speed.
• D)The difference between the older and younger students is due to sampling error.

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Definitions:

Total Risk

The complete scope of uncertainty or variability in returns on an investment, including both systematic and unsystematic risk factors.

Security Market Line

A representation in finance that shows the relationship between risk (as measured by beta) and expected return of investments, used in the capital asset pricing model.

Capital Market Line

A line used in the capital asset pricing model to depict the rates of return for efficient portfolios depending on the risk-free rate of return and the level of risk (standard deviation) for a particular portfolio.

Characteristic Line

In finance, a line that describes the relationship between the return on an investment and the return on the market as a whole, used in the Capital Asset Pricing Model.