Three Friends, Who Are Also Very Competitive, Enrolled in Three

question 7

Essay

Three friends, who are also very competitive, enrolled in three different sections of the same history course. Their raw scores on the first test, along with the means and standard deviations of their respective sections, are listed below.
$\begin{array}{llll}&\underline{X} &\mu& \sigma \\\text { Marcus } & 81 & 79 & 3 \\\text { Klaus } & 98 & 85 & 6 \\\text { Ethan } & 64 & 75 & 5\end{array}$ a. Who gets bragging rights? Explain.
b. Who should devise a new study strategy? Explain.

---

Definitions:

Indirect Method

A way of reporting cash flows from operating activities in the cash flow statement, starting with net income and adjusting for changes in balance sheet accounts.

Variable Interest Entity

A legal entity in which an investor holds a controlling interest not based on majority voting rights.

Corporation

A legal entity that is separate and distinct from its owners, offering limited liability to its shareholders, and having the ability to raise capital by selling shares.

Adjusted Book Value

The net worth of a company, calculated by adjusting the assets' and liabilities' book value on the balance sheet to reflect their true market value.