You Are Evaluating Investing in a Cognitive Training Company

question 49

Multiple Choice

You are evaluating investing in a cognitive training company.For this reason, you want to determine whether users who complete at least 75% of the recommended daily training for two months show improved levels of reading comprehension and problem-solving skills.You select a random sample of new users and get test scores for each participant in the sample.The test score is a composite of reading comprehension and problem-solving skills.Two months later, you randomly select 15 users from the original sample who have completed 75% or more of the recommended training in the last two months and have them take a test similar to the initial test.You are interested in determining whether the average test score before training is different than the average test score after training for this sample.The after-training average is 92.8, which is 2.7 points higher than the before-training average.The sample standard deviation of the differences is 1.2.You use a significance level of 0.10, and you can assume that the differences are normally distributed in the population.The t-value from the table for this test is ______.

• A)1.761
• B)1.746
• C)1.753
• D)1.345
• E)1.339

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Definitions:

Dividend Yield Ratio

A ratio that shows the annual dividends a company distributes in relation to its stock price.

Earnings per Share

A financial performance metric that calculates the portion of a company's profit allocated to each outstanding share of common stock, indicating the company's profitability.

Equity Multiplier

A financial ratio indicating the portion of a company’s assets that are financed by stockholder's equity.

Debt-to-equity Ratio

An indicator of the distribution between shareholders' equity and borrowed funds in financing a company's assets.