Question
A test of H 0 : = 850 vs. H a : 850 is conducted for the mean of some normally distributed variable. We take
A test of H0: = 850 vs. Ha: 850 is conducted for the mean of some normally distributed variable. We take a random sample of ten individuals and calculate a sample mean of 800. A 96% confidence interval for is calculated to be (752, 848). Which of the following statements istrue?
Question 6 options:
A)We fail to reject H0at the 2% level of significance, because 850 is not contained in the 96% confidence interval.
B)We fail to reject H0at the 4% level of significance, because 850 is not contained in the 96% confidence interval.
C)We reject H0at the 4% level of significance, because 800 is not contained in the 96% confidence interval.
D)We reject H0at the 4% level of significance, because 850 is not contained in the 96% confidence interval.
E)We fail to reject H0at the 8% level of significance, because 850 is contained in the 96% confidence interval.
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An Introduction to the Mathematics of financial Derivatives
Authors: Salih N. Neftci
2nd Edition
978-0125153928, 9780080478647, 125153929, 978-0123846822
