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Solve the problem. Critical values for the runs test for randomness can be calculated by listing all possible sequences. Using the elements B, B, B, R, R, R list the 20 different possible sequences. Find the number of runs for each sequence. Are you able to find 5% cutoff values for G? What do you conclude?
Debt-Equity Ratio
A measure of a company's financial leverage, calculated by dividing its total liabilities by its shareholder equity.
Stock Repurchase
A company's buying back of its own shares from the marketplace, reducing the number of outstanding shares and often increasing shareholder value.
Excess Cash
Cash holdings that exceed the normal operational needs of a company, potentially available for investment or distribution to shareholders.
Undervalued
A financial term referring to an asset or security whose price is perceived to be less than its intrinsic or fair value.
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