TABLE 11-6 As Part of an Evaluation Program, a Sporting Goods Retailer

question 112

Multiple Choice

TABLE 11-6
As part of an evaluation program, a sporting goods retailer wanted to compare the downhill coasting speeds of 4 brands of bicycles. She took 3 of each brand and determined their maximum downhill speeds. The results are presented in miles per hour in the table below.

-Referring to Table 11-6, what should be the decision for the Levene's test for homogeneity of variances at a 5% level of significance?

• A) Reject the null hypothesis because the p-value is smaller than the level of significance.
• B) Reject the null hypothesis because the p-value is larger than the level of significance.
• C) Do not eject the null hypothesis because the p-value is smaller than the level of significance.
• D) Do not reject the null hypothesis because the p-value is larger than the level of significance.

---

Definitions:

Required Return

The basic yearly rate of return essential for inducing companies or individuals to invest money into a specific project or security.

Annual Dividend

The total dividend payment a shareholder will receive from a company in a single year, per share owned.

Rate Of Return

The success or failure of an investment over a tailored period, represented in terms of the percentage of the investment's cost price.

Preferred Stock

A type of stock that provides a fixed dividend before any dividends are paid to common stockholders and typically has priority over common stock in the event of bankruptcy.