Use the Following Information for Questions
on January 1

question 69

Multiple Choice

Use the following information for questions
On January 1, Canary Co. had total shareholders' equity as shown below when their shares were selling at $25 per share. $\begin{array}{ll}\text { Common shares (125,000 shares) } & \$ 2,500,000 \\\text { Retained earnings } & 4,000,000 \\\quad \text { Total shareholders' equity } & \$ 6,500,000\end{array}$
-Assume the company declared and issued a 10% stock dividend and that the market price remained constant.The effect of this dividend would:

• A)Increase common shares by $312,500
• B)Increase common shares by $250,000
• C)Decrease retained earnings by $250,000
• D)Increase common shares by $400,000

Identify the limitations of correlation coefficients in detecting certain types of relationships.

Understand the concept and application of Structural Equation Modeling (SEM).

Identify techniques for statistically controlling third variables.

Recognize the importance of partial correlation coefficients in controlling for third variables.

---

Definitions:

ANOVA Table

A tabular representation used in analysis of variance (ANOVA) to summarize the sources of variation in data among and within groups being compared.

ANOVA F Statistic

A statistical value obtained from analysis of variance (ANOVA) used to assess whether there are significant differences among the means of three or more groups.

Null Hypothesis

A statement used in statistics that proposes there is no significant difference or effect, serving as a default or starting assumption in hypothesis testing.

Degrees Of Freedom

The count of independent values or quantities that can vary in an analysis without violating any constraints.