Question: Suppose that a business person knows that the average difference in returns between investment 1 and investment 2 is normally distributed with a mean of
Suppose that a business person knows that the average difference in returns between investment 1 and investment 2 is normally distributed with a mean of $0 and standard deviation of $500. After a change in market conditions, she collects a sample learns that the mean of this sample is -$1,000. What can be said about the hypothesis that the distribution has remain unchanged?
| Yes, they can reject the hypothesis. | ||
| No, they cannot reject the hypothesis, | ||
| The null hypothesis can be accepted. | ||
| Not enough information given. |
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