A Random Sample of 30 Executives from Companies with Assets

question 65

Multiple Choice

A random sample of 30 executives from companies with assets over $1 million was selected and
Asked for their annual income and level of education. The ANOVA comparing the average income
Among three levels of education rejected the null hypothesis. The Mean Square Error (MSE) was
243) 7. The following table summarized the results:
When comparing the mean annual incomes for executives with Undergraduate and Master's
Degree or more, the following 95% confidence interval can be constructed:

• A) 2.0 ± 2.052*6.52
• B) 2.0 ± 3.182*6.51
• C) 2.0 ± 2.052*42.46

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Definitions:

Return on Equity

A financial ratio that measures the profitability of a firm in relation to its equity, indicating how well a company uses investments to generate earnings growth.

Stockholders' Equity

The residual interest in the assets of a corporation that remains after deducting its liabilities, often referred to as shareholder's equity or owners' equity.

Gross Margin Percentage

A financial metric that measures the proportion of money left over from revenues after accounting for the cost of goods sold, expressed as a percentage.

Income Statement

A financial statement that shows a company's revenues, expenses, and net income over a specific period.