Nicholas Manufacturing Just Announced Yesterday That Its Fourth Quarter Earnings

question 57

Multiple Choice

Nicholas Manufacturing just announced yesterday that its fourth quarter earnings will be 10% higher than last year's fourth quarter. Nicholas had an abnormal return of −1.2% yesterday. This suggests that

• A) the market is not efficient.
• B) Nicholas' stock will probably rise in value tomorrow.
• C) investors expected the earnings increase to be larger than what was actually announced.
• D) investors expected the earnings increase to be smaller than what was actually announced.
• E) earnings are expected to decrease next quarter.

Recognize the symptoms of groupthink and strategies for avoiding it.

Explain the importance and characteristics of high-performing teams.

Describe the stages of group or team development.

Understand the role of effective team leadership in achieving successful outcomes.

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Definitions:

Hypothesis

A proposed explanation made on the basis of limited evidence as a starting point for further investigation.

Expected Frequency

The predicted count of occurrences or the number of times an outcome is anticipated to happen in a statistical experiment.

Normal Distribution

A probability distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence.

Interval

A range of numbers between two specified limits.