The ZZZ Corporation Issued $25 Million in New Common Stock

question 117

Multiple Choice

The ZZZ Corporation issued $25 million in new common stock in 2013.It used $18 million of the proceeds to replace obsolete equipment in its factory and $7 million to repay bank loans.As a result,investment:

• A) of $7 million has occurred.
• B) of $25 million has occurred.
• C) of $18 million has occurred.
• D) has not occurred.

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Definitions:

Independence

A situation in statistics where two events are not influenced by each other, and the occurrence of one does not affect the probability of occurrence of the other.

Chi-Square Statistic

A statistical measure used to evaluate the differences between observed and expected frequencies in categorical variables.

Observed Frequencies

The number of times a particular value or event actually occurs in a dataset.

Expected Frequencies

In statistical analysis, these refer to the counts predicted by a probability model or theoretical distribution, used in the comparison of observed data for goodness-of-fit tests.