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SCENARIO 11-12
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.
-Referring to Scenario 11-12, 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.
Percentage-of-Completion Method
An accounting method used to recognize revenues and expenses of long-term projects proportionately with the degree of completion.
IFRS
A collection of accounting standards known as International Financial Reporting Standards, developed by the International Accounting Standards Board, which directs the global preparation of financial statements.
Selling Goods
The act of transferring physical products or merchandise to a buyer in exchange for money or other compensation.
Cookie Jar Reserves
An accounting practice where companies store reserves in good years to smooth out earnings by releasing them in bad years, which can be seen as deceptive.
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