Your investment executive claims that the average yearly rate of return on the stocks she recommends is at least 10.0%. You plan on taking a sample to test her claim. The correct set of hypotheses is _____. A) H₀: μ 10.0% C) H₀: μ 10.0% H_a: μ ≤ 10.0% D) H₀: μ ≥ 10.0% H_a: μ

Question

Your investment executive claims that the average yearly rate of return on the stocks she recommends is at least 10.0%. You plan on taking a sample to test her claim. The correct set of hypotheses is _____. A) H₀: μ < 10.0% H_a: μ ≥ 10.0% B) H₀: μ ≤ 10.0% H_a: μ > 10.0% C) H₀: μ > 10.0% H_a: μ ≤ 10.0% D) H₀: μ ≥ 10.0% H_a: μ < 10.0%

Quizplus · Accepted Answer

The correct hypotheses for testing if the average yearly rate of return on the stocks is at least 10.0% are: Null hypothesis (H0): μ ≥ 10.0% (the average return is at least 10.0%), and Alternative hypothesis (Ha): μ < 10.0% (the average return is less than 10.0%). This setup is designed to challenge the claim by testing if there's evidence the return is actually lower than claimed.

Your Investment Executive Claims That the Average Yearly Rate of Return