A Random Sample of 40 Companies with Assets Over $10

question 74

Multiple Choice

A random sample of 40 companies with assets over $10 million was surveyed and asked to indicate their industry and annual computer technology expense. The ANOVA comparing the average computer technology expense among three industries rejected the null hypothesis. The mean square error (MSE) was 195. The following table summarized the results: Based on the comparison between the mean annual computer technology expense for companies in the education and tax services industries, _________________.

• A) a confidence interval shows that the mean annual computer technology expenses are not significantly different
• B) the ANOVA results show that the mean annual computer technology expenses are significantly different
• C) a confidence interval shows that the mean annual computer technology expenses are significantly different
• D) the ANOVA results show that the mean annual computer technology expenses are not significantly different

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Definitions:

Affordable Consumption Options

Economically accessible choices available to consumers for goods and services within their budget constraints.

Indifference Curves

A graph representing different bundles of goods between which a consumer is indifferent, showing preferences and trade-offs.

Substitution Effect

The change in consumption patterns due to a change in relative prices, leading consumers to substitute a product with a cheaper alternative.

Income Effect

The change in consumption resulting from a change in real income, typically due to a change in prices, that can increase or decrease purchasing power.