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Indicate whether each of the following items is true or false.
_____ a)Many successful corporations do not pay dividends to their stockholders.
_____ b)Careful study of the financial statements will give investors the ability to predict future movements in the market price of a corporation's stock.
_____ c)The price-earnings (P/E)ratio is computed by dividing the earnings per share by the market price per share.
_____ d)As a general rule,the higher the P/E ratio,the greater is the optimism for future growth of the corporation.
_____ e)The number of shares to purchase in order to attain "significant influence" of a corporation can readily be determined from the financial statements.
Population Mean
The mean of every value in a given population.
Population Variance
The average of the squared differences from the Mean, describing the variation of the entire population.
Normally Distributed
Describes a bell-shaped frequency distribution that is symmetrical about the mean, indicating that data near the mean are more frequent in occurrence than data far from the mean.
Sample Size
The number of observations or data points collected in a study or used to represent a larger population.
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