An analyst suspects that, in the most recent year, excess returns on stocks have fallen below 5%.
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An analyst suspects that, in the most recent year, excess returns on stocks have fallen below 5%. She wants to study whether the excess returns are less than 5%.
Designating the population mean as μ, which hypotheses are most appropriate for her analysis?
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A. Ho: = 5% versus H: + 5% B. Ho: 2 5% versus H: < 5% C. Ho: < 5% versus H: > 5%
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B is correct The null hypothesis is wha...View the full answer
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