TABLE 12-20
Data on the Percentage of 200 Hotels in Each

question 144

Short Answer

TABLE 12-20
Data on the percentage of 200 hotels in each of the three large cities across the world on whether minibar charges are correctly posted at checkout are given below.
$\begin{array}{cccc} \hline& \text { Hong Kong } & \text { New York } & \text { Paris } \\\hline\text { Yes } & 86 \% & 76 \% & 78 \% \\\text { No } & 14 \% & 24 \% & 22 \%\\\hline\end{array}$
At the 0.05 level of significance, you want to know if there is evidence of a difference in the proportion of hotels that correctly post minibar charges among the three cities.
-Referring to Table 12-20, what are the values of the absolute difference and the critical range for the Marascuilo procedure to test for the difference in proportions between Hong Kong and New York using a 0.05 level of significance?

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Definitions:

Optimal Level

The most efficient, effective, or desirable amount or degree of something.

Financial Leverage

The use of borrowed money (debt) to amplify the potential return on investment.

Break-even EBIT

The level of earnings before interest and taxes (EBIT) at which a company neither makes a profit nor incurs a loss.

Target Capital Structure

Refers to the mix of debt, preferred stock, and common equity that a company aims to hold to fund its operations and maximize its value.