In Testing the Hypotheses:
H₀: P₁ - P₂ = 0 $\neq$

question 13

Essay

In testing the hypotheses:
H₀: p₁ - p₂ = 0.10
H₁ : p₁ - p₂ $\neq$ ? 0.10
we find the following statistics:
n₁ = 150, x₁ = 72.
n₂ = 175, x₂ = 70.
a. What is the p-value of the test?
b. Briefly explain how to use the p-value to test the hypotheses, at a 1% level of significance.

Identify and understand the legal and ethical implications of insider trading.

Recognize the roles and responsibilities of individuals in preventing and reporting insider trading.

Distinguish between tipper and tippee liability within the context of securities trading.

Understand the concept of securities fraud and the various defenses that can be deployed against such accusations.

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Definitions:

Monthly Cash Expenses

The total amount of money spent by a business in cash within a month for operational and administrative purposes.

Cash Equivalents

Short-term, highly liquid investments that are readily convertible into known amounts of cash and have original maturities of three months or less.

Financial Statements

Reports that provide an overview of a company's financial condition, including income statement, balance sheet, and cash flow statement.

Petty Cash Fund

A modest cash reserve used for quick payments for assorted trifling expenses.