Annual Growth Rates for Individual Firms in the Toy Industry

question 87

Multiple Choice

Annual growth rates for individual firms in the toy industry tend to fluctuate dramatically, depending on consumers'; tastes and current fads. Consider the following growth rates (in percent) for two companies in this industry, Hasbro and Mattel. Which of the following is the correct conclusion?

• A) Do not reject Η₀. We can conclude the growth rate variance of Hasbro is different from the growth rate variance of Mattel.
• B) Reject Η₀. We can conclude the growth rate variance of Hasbro is different from the growth rate variance of Mattel.
• C) Do not reject Η₀. We cannot conclude the growth rate variance of Hasbro is different from the growth rate variance of Mattel.
• D) Reject Η₀. We cannot conclude the growth rate variance of Hasbro is different from the growth rate variance of Mattel.

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