Two Accounting Professors Decided to Compare the Variance of Their

question 101

Multiple Choice

Two accounting professors decided to compare the variance of their grading procedures. To accomplish this, they each graded the same 10 exams, with the following results: At the 5% level of significance, what is the decision regarding the null hypothesis?

• A) Reject the null hypothesis and conclude the variances are different.
• B) Fail to reject the null hypothesis and conclude no significant difference in the variances.
• C) Reject the null hypothesis and conclude the variances are the same.
• D) Fail to reject the null hypothesis and conclude the variances are the same.

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Definitions:

Unsecured Bonds

Debentures or bonds that are not backed by specific collateral.

Debentures

A type of long-term debt instrument that is not secured by physical assets or collateral but based on the issuer's creditworthiness and reputation.

Dividends

Profits of a corporation that are distributed in the form of cash payments to stockholders.