Assume You Have Two Questions of the Same Format, a 5-Point

question 29

Multiple Choice

Assume you have two questions of the same format, a 5-point scale measuring importance level. One question measures the importance of prices in the selection of a restaurant and the other measures the importance of food quality. If you want to know if the two mean scores of each question are significantly different, you would use:

• A) a z test of the differences between two percentages.
• B) the procedure for testing the significance of the difference between two means from two different groups.
• C) an independent samples t test.
• D) a two mean comparison z test.
• E) a two question, mean comparison test.

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Definitions:

Debt-To-Equity Ratio

A financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets.

Corporate Veil

A legal concept that separates the personality of a corporation from the personalities of its shareholders, and protects them from being personally liable for the company's debts and obligations.

Thin Capitalization

In corporation law, a ground for piercing the corporate veil due to the shareholders’ contributing too little capital to the corporation in relation to its needs.

Nevada Corporation

A corporation chartered in the state of Nevada, often chosen for its favorable corporate laws and tax rules.