Ashley Owns Stock in a Company Which Has Consistently Paid

question 49

Multiple Choice

Ashley owns stock in a company which has consistently paid a growing dividend over the last five years. The first year Ashley owned the stock, she received $1.71 per share and in the fifth year, she received $2.89 per share. What is the growth rate of the dividends over the last five years?

• A) 7 percent
• B) 11 percent
• C) 12 percent
• D) 5 percent

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Definitions:

SAS Proficiency

The level of skill or expertise someone has with the Statistical Analysis System (SAS), a software suite used for advanced analytics and data management.

GAISE

Stands for Guidelines for Assessment and Instruction in Statistics Education, recommending strategies for statistics education that promote students' active learning.

Poisson Distribution

A probability distribution that models the number of times an event occurs in a fixed interval of time or space, assuming events occur with a known constant mean rate independently of the time since the last event.

Chi-square Statistic

A statistic used to test hypotheses about the distribution of observations among categories.