A Random Sample of 30 Executives from Companies with Assets

question 41

Multiple Choice

A random sample of 30 executives from companies with assets over $1 million was selected and asked for their annual income and level of education. The ANOVA comparing the average income among three levels of education rejected the null hypothesis. The mean square error (MSE) was 243.7. The following table summarized the results: Based on the comparison between the mean annual incomes for executives with undergraduate and master's degrees or more,________.

• A)a confidence interval shows that the mean annual incomes are not significantly different
• B)the ANOVA results show that the mean annual incomes are significantly different
• C)a confidence interval shows that the mean annual incomes are significantly different
• D)the ANOVA results show that the mean annual incomes are not significantly different

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Definitions:

Opportunity Costs

The cost of forgoing the next best alternative when making a decision or choice.

Implicit Costs

Indirect, non-out-of-pocket expenses which represent the opportunity costs of using resources owned by the firm for its operations.

Accounting Profit

The difference between total revenue and explicit costs.

Economic Profit

The difference between total revenue and total costs, including explicit and implicit costs.