Elwin Osbourne, CIO at GFS, Inc

question 59

Multiple Choice

Elwin Osbourne, CIO at GFS, Inc., suspects that at least 25% of email messages sent by GFS employees are not business related.A random sample of 300 email messages was selected to test this hypothesis at the 0.01 level of significance.Fifty-four of the messages were not business related.The appropriate decision is __.

• A)increase the sample size
• B)gather more data
• C)reject the null hypothesis
• D)do not reject the null hypothesis
• E)maintain status quo

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Definitions:

Minimum Required Rate

The lowest return on investment that a company or individual deems acceptable, often used in financial analysis and capital budgeting.

Operating Assets

Operating assets are the assets a company uses in its daily operations to generate revenue, such as inventory, property, plant, and equipment.

Net Operating Income

Refers to the profit realized from a business's operations after subtracting all operating expenses, excluding taxes and interest.

Residual Income

The net income an enterprise or project generates above its cost of capital or required rate of return.