SCENARIO 12-18 A Consulting Firm That Surveyed Consumers' Holiday Shopping Behavior Found

question 149

True/False

SCENARIO 12-18
A consulting firm that surveyed consumers' holiday shopping behavior found that the percentage of
consumers from the U.S., Canada, and China who said that they planned to spend more on holiday
shopping were 40%, 34% and 72%, respectively. Random samples of size 150 are selected from each
of the three countries.
You want to test for evidence of a difference among the proportions across the three countries using
the 0.05 level of significance.
-Referring to Scenario 12-18, the decision made suggests that the 3 countries do
not all have the same proportion of consumers who planned to spend more on holiday shopping.

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Definitions:

Rule of 72

A mathematical rule to estimate the number of years required to double an investment at a given annual fixed interest rate.

$10,000

A numerical figure representing a specific amount of money, notable in various financial contexts.

Cash Flows

signify the net amount of cash being transferred into and out of a business, crucial for assessing liquidity, flexibility, and overall financial health.

Net Present Value

A financial metric that calculates the value of a series of cash flows by discounting them to their present value, used to assess the profitability of investments.