Golf Course Designer Roberto Langabeer Is Evaluating Two Sites, Palmetto $\bar { x }$

question 1

Multiple Choice

Golf course designer Roberto Langabeer is evaluating two sites, Palmetto Dunes and Ocean Greens, for his next golf course.He wants to prove that Palmetto Dunes residents (population 1) play golf more often than Ocean Greens residents (population 2) .Roberto commissions a market survey to test this hypothesis.The market researcher used a random sample of 64 individuals from each suburb, and reported the following: $\bar { x }$ ₁ = 15 times per month and $\bar { x }$ ₂ = 14 times per month.Assume that $\sigma$ ₁ = 2 and $\sigma$ ₂ = 3.With $\alpha$ = .01, the observed z value is _________________.

• A)2.22
• B)12.81
• C)4.92
• D)3.58
• E)1.96

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Definitions:

Dilution

The reduction in existing shareholders' ownership percentage of a company as a result of the company issuing new shares.

Shareholder Value

The value delivered to shareholders due to management's ability to grow earnings, dividends, and share price.

Market Value

The existing exchange rate for assets or services in the marketplace.

Underpricing

The practice of listing a company's stock at a lower price than its market value during its IPO, typically to ensure the stock is fully subscribed.