Test the Following Sequence for Randomness At $\alpha = 0.05$
a A a A B B B a A

question 51

Multiple Choice

Test the following sequence for randomness at $\alpha = 0.05$ .
A A A A B B B A A A B B
Table of Critical Values for the Number of Runs, $\alpha = 0.05$
$\begin{array}{c|cccc}\text { Value of } &{\text { Value of } \boldsymbol{n}_{\mathbf{2}}} \\\boldsymbol{n}_{\mathbf{1}} & \mathbf{4} & \mathbf{5} & \mathbf{6} & \mathbf{7} \\\hline & 2 & 3 & 3 & 3 \\\mathbf{6} & 9 & 10 & 11 & 12 \\& 2 & 3 & 3 & 3 \\\mathbf{7} & 10 & 11 & 12 & 13 \\& 3 & 3 & 3 & 4 \\\mathbf{8} & 10 & 11 & 12 & 13\end{array}$

• A) Do not reject the hypothesis that the sequence is random, because the test value 3 is between the critical values 3 and 10.
• B) Do not reject the hypothesis that the sequence is random, because the test value 4 is between the critical values 3 and 11.
• C) Do not reject the hypothesis that the sequence is random, because the test value 5 is outside the critical values 3 and 12.
• D) Reject the hypothesis that the sequence is random, because the test value 3 is between the critical values 3 and 11.

Record journal entries for equity method income, dividends, and acquisition differentials.

Distinguish between the cost and equity methods of accounting for investments.

Understand and calculate consolidated net income and retained earnings.

Assess the impact of inter-company transactions on consolidated financial statements.

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