14. In general, the null and alternative hypotheses are A. additive B. correlated C. multiplicative D. mutually exclusive 15. If the chosen significance level is a = 0.05, then A. there is a 5% probability of rejecting a true null hypothesis B. there is a 5% probability of accepting a true null hypothesis C. there is a 5% probability of rejecting a false null hypothesis D. there is a 5% probability of accepting a false null hypothesis 16. What is the decision rule when using the p-value approach to hypothesis testing? A. Reject Ho if the p-value > a. B. Reject Ho if the p-value < a. C. Do not reject Hoif the p-value < 1 - a. D. Do not reject Ho if the p-value > 1 - a. Answer: 17. A portfolio manager claims that the mean annual return on one of the mutual funds he manages exceeds 8%. To substantiate his claim, he states that over the past 10 years, the mean annual return for the mutual fund has been 9.5%, with a sample standard deviation of 1.5%. Assume annual returns are normally distributed. 1) Specify the competing hypotheses to test the portfolio manager's claim.