Let μ denote the true average radioactivity level (picocuries per liter). The value 5 pCi/L is considered the dividing line between safe and unsafe water. Would you recommend testing H0: μ = 5 versus Ha: μ > 5 or H0: μ = 5 versus Ha: μ < 5? Explain your reasoning. [Hint: Think about the consequences of a type I and type II error for each possibility.]

50 min

step-by-step explanation:

they will be decreasing both their times in half

60 / 2 = 30

40/2 = 20

30 + 20 = 50

required rate of return = 0.166 = 16.6%

step-by-step explanation:

under the capital asset pricing model (capm), the required or expected rate of return for a particular security or asset is given using the formula:

required rate of return = risk-free rate + beta*(market risk premium)

we are given that;

risk-free rate = 4% = 0.04

beta = 1.4

market risk premium = 9% = 0.09

we simply plug these values into the above formula;

required rate of return = 0.04 + 1.4*(0.09)

required rate of return = 0.04 + 0.126

required rate of return = 0.166 = 16.6%