Question 26

A mutual fund manager believes that a new research method will provide better returns for clients. The manager's historical monthly return prior to the new research method was 0.46%. After the manager began using the new method the monthly return was 0.57%. After running a hypothesis test, the manager saw that the one sided p-value was 0.029. Assuming a 95% confidence level, which of the conclusions below would be correct?
  • Question 27

    A government agency is interested in developing the most accurate forecast for the poverty rate in the United States and decides to perform regression analyses using a combination of the following independent variables: the percent of women in the labor force and the percent of the population that is uninsured. The agency collects data from all 50 U.S. states but is unsure whether both variables should be in the model. The agency runs three regressions:
    Regression A. Poverty Rate = a + b1*(Percent of women in the labor force) + b2*(Percent uninsured)
    Regression B. Poverty Rate = a + b*(Percent of women in the labor force)
    Regression C. Poverty Rate = a + b*(Percent uninsured)

    The regression statistics for all three regressions are given below. Based on these statistics, which model should the agency use to obtain the MOST accurate forecast?
  • Question 28

    An athletic shoe company is trying to establish a stronger brand identity with consumers. Its objective is to first understand, broadly, how consumers value its brand compared to its
    competitors and then determine how much consumers value specific features of its competitors' products. Which of the following approaches would be MOST effective in gathering this information?
  • Question 29

    Company B has the following summarized Statement of Cash Flows for the year. Company B is MOST likely in what stage of the business life-cycle?
  • Question 30

    A study was conducted to examine the effect of age, education level, number of minor legal offences, and daily alcohol consumption on annual income.

    Which of the following hypothesis tests is NOT conducted in the multiple linear regression output table?
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