To Test If the Mean Returns on a Major Index

question 8

Multiple Choice

To test if the mean returns on a major index have changed from the historic monthly average of 1.2%,a sample of 36 recent monthly returns is used to calculate the value of the relevant t_df test statistic.At the 5% level of significance,we reject the null hypothesis if this value is ____________.

• A) greater than 1.69
• B) greater than 1.645
• C) greater than 1.96 or less than −1.96
• D) greater than 2.03 or less than −2.03

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Definitions:

Autonomic Nervous System

A part of the peripheral nervous system that controls involuntary bodily functions such as heartbeat, digestion, and breathing.

Central Nervous System

Comprises the brain and spinal cord, responsible for processing information and controlling most functions of the body and mind.

Somatic

Pertaining to the body, especially as distinct from the mind or the environment.

Autonomic

Relating to the part of the nervous system that controls involuntary actions of the body, such as heart rate and digestion.