TABLE 12-18 Two New Different Models of Compact SUVs Have Just Arrived

question 26

Multiple Choice

TABLE 12-18
Two new different models of compact SUVs have just arrived at the market. You are interested in comparing the gas mileage performance of both models to see if they are the same. A partial computer output for twelve compact SUVs of model 1 and thirteen of model 2 is given below:

You are told that the gas mileage population distributions for both models are not normally distributed.
-Referring to Table 12-18, what should be the null and alternative hypotheses of the test?

• A) H₀: M₁ = M₂ vs. H₁: M₁ ≠ M₂
• B) H₀: M₁ ≥ M₂ vs. H₁: M₁ < M₂
• C) H₀: M₁ ≤ M₂ vs. H₁: M₁ > M₂
• D) H₀: M₁ ≠ M₂ vs. H₁: M₁ = M₂

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Definitions:

Acquisition Differential

The difference between the purchase price of an acquired company and the fair value of its net identifiable assets.

Common Shares

Equity securities that represent ownership in a corporation, entitling holders to a share of the corporation's profits through dividends and/or capital appreciation.

Open Market

A freely competitive market where buyers and sellers can transact without restrictions or regulations.

Goodwill

An intangible asset that arises when a business is purchased for more than the fair value of its net tangible assets.