A Two-Factor ANOVA Produces an F-Ratio for Factor a with Df

question 36

Multiple Choice

A two-factor ANOVA produces an F-ratio for factor A with df = 1,36 and an F-ratio for factor B with df = 2,36.Which of the following describes the experiment producing these F-ratios?​

• A)​1 level of factor A and 2 levels of factor B
• B)​2 levels of factor A and 3 levels of factor B
• C)​2 levels for both factors
• D)​3 levels for both factors

---

Definitions:

Return on Debt

A measure of a company's profitability relative to its total debt, indicating how effectively a company is using its borrowed funds.

Cost of Equity

The return that investors expect on their investment in a company, often calculated using models like the Capital Asset Pricing Model (CAPM).

Required Return

The minimum percentage return that an investor expects to achieve by investing in a particular asset.

M&M II

Modigliani and Miller Proposition II, a theory on capital structure, posits that the value of a firm is not affected by its capital structure under a certain market process.