To Test If the Mean Returns on a Major Index

Multiple Choice

To test if the mean returns on a major index have changed from the historic monthly average of 1.2%,a sample of 36 recent monthly returns is used to calculate the value of the relevant t_df test statistic.At the 5% level of significance,we reject the null hypothesis if this value is ____________.

A) greater than 1.69
B) greater than 1.645
C) greater than 1.96 or less than −1.96
D) greater than 2.03 or less than −2.03