Alva Thomas Has Decided to Place $10,000 in an Account

question 1

Multiple Choice

Alva Thomas has decided to place $10,000 in an account payable to his alma matter when he dies. If the account grows at an annual rate of 6% compounded monthly and he lives for another 10 years, the university will receive

• A) 10,000(1 + .06)10
• B) 10,000(1 + .005)120
• C) 10,000(1 + .06)120
• D) 10,000/(1 + .005)120

---

Definitions:

Non-rejection

Refers to the decision in statistical hypothesis testing where there is insufficient evidence to discard the null hypothesis.

Decision Rule

Rule specifying the values of the statistic that result in the decision to reject or not reject the null hypothesis.

Region of Rejection

The range of values in hypothesis testing that leads to rejection of the null hypothesis, indicating statistical significance.

Alternative Hypothesis

The hypothesis that proposes there is an effect, or there is a difference, contrary to the null hypothesis.