A Random Sample of 16 Companies Was Selected and Asked

question 76

Multiple Choice

A random sample of 16 companies was selected and asked for their annual dividend rate in three different industries: utilities, banking, and insurance. The ANOVA comparing the mean annual dividend rate among three industries rejected the null hypothesis. The Mean Square Error (MSE) was 3.36. The following table summarized the results: Based on the comparison between the mean annual dividend rate for companies in the utilities and insurance industries,

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

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Definitions:

Transaction

Any event or activity that affects the financial position of a company and can be measured reliably in monetary terms.

Accounts

Records that summarize all the transactions related to a specific financial aspect, such as assets, liabilities, equity, expenses, and income.

Basic Accounting Equation

Assets = Liabilities + Owner’s equity.

Assets

Economic resources owned or controlled by an individual, company, or entity, expected to provide future benefits.