A statistician has framed his hypothesis testing problem as:Ho: mean >= 1 H1: mean < 1For the given sample, he calculates the z-statistic. Then, the region of rejection at the 95% level is given by:
Answer(s): B
Since the alternative hypothesis is directional and to the left, the rejection region for the null is also to the left.Hence, you should use a one-tailed test. 5% of the probability mass in a Normal distribution lies in the left tail with values which are less than -1.645. Therefore, the rejection region comprises of z-values less than -1.645.
On a survey questionnaire, students were asked to indicate their class rank in college. If there were only four choices from which to choose, which measure(s) of central tendency would be appropriate to use for the data generated by that questionnaire item?
Answer(s): C
We can discard the mean since it is not appropriate here. If we want to find out which class has the most students or where the students are most frequently ranked, then the mode and median should be used.
What annual deposit would you need to make, beginning in one year, into an account paying 7% per year, compounded annually, in order to have $50,000 in it after 20 years, assuming that the account has nothing in it today?
On the BAII Plus, press 20 N, 7 I/Y, 0 PV, 50000 FV, CPT PMT. On the HP12C, press 20 n, 7 i, 0 PV, 50000 FV, PMT. Note that the answer will be displayed as a negative number.
An investment of $100 grows in five years to $205. The investor observes that the annual arithmetic rate of return and the geometric rate of return were the same over this period. The annual arithmetic rate of return must be ________.
If the annual geometric rate of return is r, then 100 * (1 + r)^5 = 205. This gives r = 15.44%. Note that the only way the mean will be equal to the geometric mean if every year, the stock experienced a return of 15.44% per year.
What is the present value today of these annual cash flows: $1,000, $2,000, $3,000? Assume the first cash flow occurs 1 year from today and an interest rate of 10% per year, compounded annually.
You could solve this question using 3 different compound interest problems, but it is easier to solve them using the calculator's cash flow functions. On the BAII Plus, press CF 2nd CLRWork 0 ENTER DownArrow 1000 ENTER DownArrow DownArrow 2000 ENTER DownArrow DownArrow 3000 ENTER DownArrow DownArrow 2nd Quit. Then press NPV 10 ENTER DownArrow CPT. On the HP12C, press these keys: 0 BlueShift CFo 1000 BlueShift CFj 2000 BlueShift CFj 3000 BlueShift CFj. Then press 10 i, YellowShift NPV. The "DownArrow" represents the downward-pointing arrow on the top row of the BAII Plus keyboard. Make sure that the BAII Plus has the P/Y value set to 1.
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