Equity Ownership Changes in Spin-Offs, but It Does Not Change

question 1

True/False

Equity ownership changes in spin-offs, but it does not change in split-ups.

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Definitions:

Standardized Test Statistic

A value computed from sample data and the null hypothesis that measures how many standard deviations the sample data falls from the hypothesized value.

Alternative Hypothesis

In statistical hypothesis testing, the hypothesis that suggests there is an effect or a difference, as opposed to the null hypothesis which suggests there is no effect or difference.

P-Value

The probability of obtaining test results at least as extreme as the results actually observed, assuming that the null hypothesis is correct.

Sign Test

A non-parametric test used to determine if there is a significant difference between paired observations.