A Direct Retailer That Sells Clothing on the Internet Has

question 37

True/False

A direct retailer that sells clothing on the Internet has two distribution centers and wants to determine if there is a difference between the proportion of customer order shipments that contain errors (wrong color, wrong size, etc.). It calculates a 95 percent confidence interval on the difference in the sample proportions to be -0.012 to 0.037. Based on this, it can conclude that the distribution centers differ significantly for the proportion of orders with errors.

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Definitions:

Common Stock

A form of corporate equity ownership, a type of security that represents ownership of a portion of a company.

Dividends Declared

The amount of earnings a company decides to distribute to its shareholders as measured at a specific point in time.

Retained Earnings

The portion of net income that is held back by a company to be reinvested in its operations or to pay down debt, rather than being distributed to shareholders as dividends.