Suppose we wish to test the hypothesis that an internship program allows its interns to earn $2,750 per semester and let us assume that this hypothesis is, in fact, true. Which of the following best illustrates the logic of hypothesis testing at the 95% confidence level?

a) From among 100 samples, 95 percent of them would generate means that fell within ±1.96 z scores.
b) From among 99 samples, 100 percent of them would generate means that fell within ±2.58 z scores.
c) From among 100 samples, 95 percent of them would generate means that fell within ±2.58 z scores.
d) From among 100 samples, 99 percent of them would generate means that fell within ±1.96 z scores.

Answer: a) From among 100 samples, 95 percent of them would generate means that fell within ±1.96 z scores.

Business

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