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:

Organizational Entity

Refers to any specific social unit in the context of a larger social system, including businesses, governments, and non-profits, that has a structured purpose and function.

Vertical Integration

A strategy where a company expands its operations into different stages of production or distribution within the same industry.

Increase Risk

Enhancing the likelihood of encountering negative outcomes or danger in a given situation.

Vertical Integration

A strategy where a firm expands its operations into different stages of production or distribution within the same industry.