Q1. James Ambercrombie believes that the average return on equity in the utility industry, µ, is greater than 10%. What are the null (H0) and alternative (Ha) hypotheses for his study? A) H0: µ < 0.10 versus Ha: µ > 0.10. B) H0: µ ≤ 0.10 versus Ha: µ > 0.10. C) H0: µ > 0.10 versus Ha: µ < 0.10.
Q2. George Appleton believes that the average return on equity in the amusement industry, µ, is greater than 10%. What is the null (H0) and alternative (Ha) hypothesis for his study? A) H0: > 0.10 versus Ha: ≤ 0.10. B) H0: ≤ 0.10 versus Ha: > 0.10. C) H0: > 0.10 versus Ha: < 0.10.
Q3. Brian Ci believes that the average return on equity in the airline industry, µ, is less than 5%. What are the appropriate null (H0) and alternative (Ha) hypotheses to test this belief? A) H0: µ ≥ 0.05 versus Ha: µ < 0.05. B) H0: µ < 0.05 versus Ha: µ ≥ 0.05. C) H0: µ < 0.05 versus Ha: µ > 0.05.
Q4. Jill Woodall believes that the average return on equity in the retail industry, µ, is less than 15%. What are the null (H0) and alternative (Ha) hypotheses for her study? A) H0: µ ≤ 0.15 versus Ha: µ > 0.15. B) H0: µ ≥ 0.15 versus Ha: µ < 0.15. C) H0: µ < 0.15 versus Ha: µ ≥ 0.15.
Q5. Jo Su believes that there should be a negative relation between returns and systematic risk. She intends to collect data on returns and systematic risk to test this theory. What is the appropriate alternative hypothesis? A) Ha: ρ < 0. B) Ha: ρ > 0. C) Ha: ρ ≠ 0.
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