A Random Sample of 40 Companies with Assets Over $10

question 5

Multiple Choice

A random sample of 40 companies with assets over $10 million was selected and asked for their annual computer technology expense and industry. The ANOVA comparing the average computer technology expense among three industries rejected the null hypothesis. The Mean Square Error (MSE) was 195. The following table summarized the results: Based on the comparison between the mean annual computer technology expense for companies in the Education and Tax services industries,

• A) A confidence interval shows that the mean annual computer technology expenses are not significantly different.
• B) The ANOVA results show that the mean annual computer technology expenses are significantly different.
• C) A confidence interval shows that the mean annual computer technology expenses are significantly different.
• D) The ANOVA results show that the mean annual computer technology expenses are not significantly different.

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Definitions:

Fringe Benefits

Nonwage compensation, mainly medical insurance, that workers receive from employers.

Demand for Labor

The total amount of labor that employers are willing and able to hire at a given wage rate in a certain period.

Marginal Revenue Product

The additional revenue generated from employing one more unit of a resource or factor of production.

Wage Rate

The amount of compensation workers receive in exchange for their labor, typically expressed per hour, day, or piece rate.