TABLE 11-11
a Student Team in a Business Statistics Course

question 30

True/False

TABLE 11-11
A student team in a business statistics course designed an experiment to investigate whether the brand of bubblegum used affected the size of bubbles they could blow. To reduce the person-to-person variability, the students decided to use a randomized block design using themselves as blocks. Four brands of bubblegum were tested. A student chewed two pieces of a brand of gum and then blew a bubble, attempting to make it as big as possible. Another student measured the diameter of the bubble at its biggest point. The following table gives the diameters of the bubbles (in inches) for the 16 observations.
$$\begin{array}{l}\text { Brand of Bubblegum }\\\begin{array} { l c c c c } \hline \text { Student } & \text { A } & \text { B } & \text { C } & \text { D } \\\hline \text { Kyle } & 8.75 & 9.50 & 8.50 & 11.50 \\\text { Sarah } & 9.50 & 4.00 & 8.50 & 11.00 \\\text { Leigh } & 9.25 & 5.50 & 7.50 & 7.50 \\\text { Isaac } & 9.50 & 8.50 & 7.50 & 7.50 \\\hline\end{array}\end{array}$$
-Referring to Table 11-11, the decision made at a 0.05 level of significance on the randomized block F
test for the difference in means implies that all 4 means are significantly different.

Apply the central limit theorem in the context of sampling distributions.

Understand different methods of accounting for investments in equity securities.

Comprehend the concept and calculation of return on total assets.

Identify and differentiate between various types of investments (equity and debt securities).

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Definitions:

AMT Depreciation

Depreciation methods for the Alternative Minimum Tax purposes, which can differ from regular tax depreciation methods, often resulting in a slower expense recognition for AMT calculations.

Straight-line Method

A method of calculating depreciation and amortization by evenly spreading the cost over the useful life of an asset.

Personal Property

Tangible items and assets (excluding real estate) owned by an individual or business, such as vehicles, jewelry, and equipment.

Standard Deduction

A set amount deducted from taxable income that reduces the amount of income subject to tax, available to all taxpayers who do not itemize deductions.