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:

Cooperation

A process where two or more entities work together towards a common goal, often leading to mutual benefit.

Competition

A situation in which two or more parties strive for a goal that cannot be shared or are vying for the same objective or resource.

Individualist Cultures

Societies that emphasize personal achievement, autonomy, and individual rights over collective goals and social responsibilities.

Collectivist Cultures

Societies that prioritize the goals, needs, and views of the group over those of the individual, emphasizing strong familial and community ties.