The Annual Dividend Rates for a Random Sample of 16

question 66

Multiple Choice

The annual dividend rates for a random sample of 16 companies in three different industries, utilities, banking, and insurance were recorded. The ANOVA comparing the mean annual dividend rate among three industries rejected the null hypothesis that the dividend rates were equal. The mean square error (MSE) was 3.36. The following table summarized the results: Based on the comparison between the mean annual dividend rate for companies in utilities and banking, the 95% confidence interval shows an interval of 1.28 to 6.28 for the difference. This result indicates that _____________________.

• A) there is no significant difference between the two rates
• B) the interval contains a difference of 5.00
• C) the annual dividend rate in the utilities industry is significantly less than the annual dividend rate in the banking industry
• D) the annual dividend rate in the banking industry is significantly less than the annual dividend rate in the utilities industry

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Definitions:

Maintenance Costs

Expenses incurred to keep property, equipment, or machinery in efficient operating condition and repair.

Productive Asset

Assets that are used by a business to generate revenue, which can include physical property, equipment, and machinery, among other items.

Residual Value

The estimated amount that an asset is expected to realize upon the end of its useful life after all depreciation or amortization has been accounted for.

Market Value

The current price at which an asset or service can be bought or sold in the market.