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_dftest 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

Question

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For a two-tailed test at the 5% significance level with 35 degrees of freedom (n-1=36-1), the critical t-values are approximately ±2.03.

To Test If the Mean Returns on a Major Index