Movie Scripts ​ in General,before a Producer Agrees to Make a Make

question 44

Essay

Movie Scripts
​ In general,before a producer agrees to make a movie,each script is thoroughly reviewed by movie editors.Suppose that the Big-Screen Film Company has recently received two scripts for new movies.To help them decide which one to produce,both are sent to 30 editors who rate the scripts to judge which one is better.Suppose that 10 editors rate script 1 better and 20 rate script 2 better. ​ ​
-{Movie Scripts Narrative} Can Big-Screen conclude at the 5% significance level that script 2 is more highly rated than script 1?

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Definitions:

Diluted Earnings

A company's earnings calculated with the assumption that all convertible securities have been converted into common stock.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, usually with predetermined dividend payments.

Common Stock

A type of equity security that represents ownership in a corporation, with voting rights and potential dividends.

Net Income

The total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.