If You Want to Compare Two Companies, You Should Use

question 3

Multiple Choice

If you want to compare two companies, you should use

• A) Book value per share.
• B) Dividend yield.
• C) Price per share.
• D) Net income.
• E) Price-earnings ratio.

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Definitions:

Inferential Statistics

A branch of statistics that allows one to make predictions or inferences about a population based on a sample.

Type I Error

Deciding wrongly that there was a significant result when in fact there was not.

Standard Deviations

A measure of the amount of variation or dispersion of a set of values.

Normal Curve

A symmetrical, bell-shaped curve that represents the distribution of many types of data where most values cluster around the mean.