An Analyst Conducts a Hypothesis Test to Check Whether the Mean

question 100

Multiple Choice

An analyst conducts a hypothesis test to check whether the mean return for a particular fund differs from 10%.He assumes that returns are normally distributed and sets up the following competing hypotheses: H_o:μ = 10,H_A:μ ≠ 10 Over the past 10 years the fund has had an average annual return of 13.4% with a standard deviation of 2.6%.The value of the test statistic is 4.14 and the critical values at the 5% significance level are−2.262 and 2.262.The correct decision is to ____________________________________.

• A) reject H_o;we can conclude that the mean differs from 10%
• B) reject H_o;we cannot conclude that the mean differs from 10%
• C) not reject H_o;we can conclude that the mean differs from 10%
• D) not reject H_o;we cannot conclude that the mean differs from 10%

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Definitions:

Blind Spot

The area in the human visual field that lacks light-detecting photoreceptor cells, resulting from the optic nerve head's location on the retina.

Bipolar Cells

Cells found in the retina of the eye that act as intermediaries between photoreceptors (rods and cones) and ganglion cells, transmitting visual information.

Optic Nerve

The optic nerve is a paired cranial nerve that transmits visual information from the retina to the brain.

Fully Adjust

Refers to the process of completely adapting or accommodating oneself to new conditions or environments.