Twenty-Five College Seniors Were Given Two Brands of Organic Hamburgers

question 52

Multiple Choice

Twenty-five college seniors were given two brands of organic hamburgers to sample: Burger A and Burger B. Four students preferred Burger A and 21 preferred Burger B. A statistician wants to determine if one of the burgers is preferred over the other. To test the null hypothesis,which of the following probability distributions is used?

• A)Poisson
• B)Chi-square
• C)Standard normal
• D)Binomial

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Definitions:

Empirical Approach

A method of acquiring knowledge based on observation or experience rather than theory or pure logic.

After-Tax Cost of Capital

The net cost of capital to a firm after accounting for the tax benefits received on debt interest, reflecting the true cost of acquiring funding after taxes.

Discount Rate

The interest rate used to discount future cash flows to their present value, often used in investment appraisal and capital budgeting.

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Designated camping areas within natural, undeveloped landscapes, often in national parks or forests, where people can camp with minimal facilities, emphasizing an experience close to nature.