CFA Practice Question

There are 434 practice questions for this study session.

CFA Practice Question

The Santa Rosa Homeowners are trying to prove that the homes in their area are less than 5 miles from the nearest fire station. The data and hypothesis test is shown below. The conclusion should be that ______

A. there is no evidence that the homes in the Santa Rosa area are, on average, 5 miles or more from the nearest fire station.
B. the homes in the Santa Rosa area are, on average, less than 5 miles from the nearest fire station.
C. the homes in the Santa Rosa area are, on average, 5 miles or more from the nearest fire station.
Correct Answer: B

Rejecting H0 (μ ≥ 5) means that μ < 5 is true. So, in terms of this story, our conclusion is that the homes in the Santa Rosa area are, on average, less than 5 miles from the nearest fire station.

User Contributed Comments 2

User Comment
johans What is wrong with A?
rufi if we reject H0, mean we have evidence that it is less than 5 miles
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