A Local Brewery Distributes Beer in Bottles Labeled 32 Ounces

question 75

Essay

A local brewery distributes beer in bottles labeled 32 ounces. A government agency thinks that the brewery is
cheating its customers. The agency selects 50 of these bottles, measures their contents, and obtains a sample
mean of 31.7 ounces with a population standard deviation of 0.70 ounce. Use a 0.01 significance level to test the
agencyʹs claim that the brewery is cheating its customers.

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Definitions:

Reverse Split

A reverse split is a stock market maneuver in which a company reduces the number of its existing shares to increase the share price without changing the company's market capitalization.

Information Content Effect

The impact of news or information release on the price and trading volume of securities.

Stock Split

A corporate decision to fragment its current shares into additional shares to raise the market fluidity of the shares.