The Annual Dividend Rates for a Random Sample of 16

question 40

Multiple Choice

The annual dividend rates for a random sample of 16 companies in three different industries,
Utilities, banking, and insurance were recorded. The ANOVA comparing the mean annual dividend
Rate among three industries rejected the null hypothesis that the dividend rates were equal. The
Mean Square Error (MSE) was 3.36. The following table summarized the results:
Compare the mean annual dividend rate for companies in the utilities and insurance industries and
Construct the 95% confidence interval.

• A) 5.78 ± 2.160 * 2.40
• B) 5.78 ± 2.120 * 2.40
• C) 5.78 ± 2.160 * 1.11
• D) 5.78 ± 2.120 * 1.11

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Definitions:

Reacquired Shares

Shares that a company buys back from its shareholders, reducing the amount of outstanding stock on the market.

Par Common Stock

The nominal or face value assigned to common shares in the articles of incorporation, often having little relation to the market value.

Preferred Stock

represents a class of ownership in a corporation that has a higher claim on its assets and earnings than common stock, usually with fixed dividends.

Earnings Per Share

A financial ratio that measures the amount of profit attributed to each outstanding share of common stock, indicating a company's profitability on a per-share basis.