A Company Decided to Test the Hypothesis That the Average

question 83

Multiple Choice

A company decided to test the hypothesis that the average time a company's employees are spending to check their private e-mails at work is more than 6 minutes.A random sample of 40 employees were selected and they averaged 6.6 minutes.It is believed that the population standard deviation is 1.7 minutes.The α is set to 0.05.The p-value for this hypothesis test would be ______.

• A) 0.0644
• B) 0.0129
• C) 0.0268
• D) 0.0395

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Definitions:

Risk-Free Economic Profits

Refers to theoretical profits that an investor can make without taking any market risk, which in reality is very hard to achieve due to market efficiencies.

Short Selling

Short selling is an investment strategy where an investor borrows shares and sells them on the open market, planning to buy them back later at a lower price to profit from the difference.

Equally-Weighted Portfolio

An investment portfolio where each asset is allocated the same percentage of total investment capital.

Securities

Financial instruments that hold some type of monetary value, such as stocks, bonds, or options.