Exhibit 19-1 Fifteen People Were Given Two Types of Cereal, Brand X

question 21

Multiple Choice

Exhibit 19-1
Fifteen people were given two types of cereal, Brand X and Brand Y. Two people preferred Brand X and thirteen people preferred Brand Y. We want to determine whether or not customers prefer one brand over the other.
-Refer to Exhibit 19-1. At 95% confidence, the null hypothesis should

• A)be rejected
• B)not be rejected
• C)be revised
• D)None of these alternatives is correct.

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Definitions:

Retained Earnings

The portion of a company's profits that is kept or retained and not paid out as dividends to shareholders.

Common Stock Account

An equity account that represents the ownership interests of common shareholders in a corporation, reflecting the invested capital and retained earnings.

Reverse Stock Split

A reverse stock split is a consolidation of shares that decreases the total number of outstanding shares and increases the share price proportionately.

Market Value

The existing price for buying or selling an asset or service in the marketplace.