A Marketing Firm Is Interested to Know Whether the Median

question 101

Multiple Choice

A marketing firm is interested to know whether the median age of college students is 21 years. A sample of 80 college students is taken. Thirty of the students were under 21, 45 of the students were over 21, and 10 were 21 years old. The conclusion is that

• A) the median age of college students is significantly different from 21.
• B) the median age of college students is not significantly different from 21.
• C) the median age of college students is significantly older than from 21.
• D) the median age of college students is significantly younger than from 21.

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Definitions:

Market Price

The current price at which an asset or service can be bought or sold in a open and competitive market.

Convertible Bonds

Convertible bonds are fixed-income debt securities that can be converted into a predetermined number of the issuer's equity shares at certain times during their life, usually at the discretion of the bondholder.

Diluted Earnings Per Share

A financial metric that calculates the quality of a company's earnings per share if all convertible securities were exercised.

Stock Dividend

A stock dividend is a distribution of additional shares to shareholders, proportionate to their existing holdings, instead of cash.