To Compare the Effect of Weather on Sales of Soft

question 62

Multiple Choice

To compare the effect of weather on sales of soft drinks, a soda manufacturer sampled two regions of the country with the following results. Is there a difference in sales between the 2 regions? i. The alternate hypothesis is pa - pb ≠ 0 ii. The pooled estimate of the population proportion is 0.36.
Iii) Using the 1% level of significance, the critical value is ±1.96.

• A) (i), (ii) and (iii) are all correct statements
• B) (i) and (ii) are correct statements, but not (iii).
• C) (i) and (iii) are correct statements but not (ii).
• D) (ii) and (iii) are correct statements but not (i).
• E) (ii) is a correct statement, but not (i) and (iii).

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Definitions:

Foreign Currency Approach

A method used in financial analysis that converts all values to a common currency to evaluate the financial performance of multinational companies.

Cash Inflows

Money or other forms of financial assets that come into a company, typically from operations, financing, or investing activities.

Cost of Capital

The rate of return a company must earn on its investments to maintain its market value and attract funds.

Inflation Rate

The percentage increase in the price level of goods and services over a period, reducing purchasing power.