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

question 97

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 is your conclusion on the test using a 5% level of significance?

• A) There is not enough evidence of a difference in median gas mileage.
• B) There is evidence of a difference in median gas mileage.
• C) There is not enough evidence of a difference in mean gas mileage.
• D) There is evidence of a difference in mean gas mileage.

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Definitions:

EPS

Earnings Per Share, a key financial metric that divides a company's profit by the number of its outstanding shares of common stock.

Business Risk

Refers to the potential threats to a company's operations or profitability that arise from internal or external factors.

Financial Leverage

The use of borrowed funds with the aim to increase the returns on equity by financing projects with debt rather than equity.

EBIT

Earnings Before Interest and Taxes, a measure of a company's profitability excluding interest and income tax expenses.