A Random Sample of 40 Companies with Assets Over $10

question 17

Multiple Choice

A random sample of 40 companies with assets over $10 million was surveyed and asked to indicate their industry and annual computer technology expense. 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 tax service and food service industries,the 95% confidence interval shows an interval of −5.85 to 14.85 for the difference. This result indicates that ________.

• A)there is not enough evidence of a significant difference between the two industry technology expenses
• B)the interval contains a difference of 20.7
• C)companies in the food service industry spend significantly more than companies in the tax service industry
• D)companies in the food service industry spend significantly less than companies in the tax service industry

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Definitions:

Treasury Bonds

Treasury Bonds are long-term government debt securities issued by the U.S. Treasury, with maturity periods typically ranging from 20 to 30 years.

Futures Contracts

Agreements, enforceable by law, to acquire or dispose of certain commodities or financial assets at a price agreed upon now, to be transacted at a later date.

Hedge Cost Risk

Hedge cost risk refers to the potential variability in the expense of hedging strategies, which are used to mitigate financial risks associated with currency, interest rates, or commodities.

Bushels

A unit of volume that is used primarily in the United States to measure quantities of agricultural commodities and dry goods.