Mean Profit
a Report Stated That the Mean Profit Margin

question 37

Short Answer

Mean Profit
A report stated that the mean profit margin of 1000 publicly held corporations is 7.5 percent and the standard deviation is 5.1 percent.Profit margins appear normally distributed.A financial analyst sampled 100 of these companies to test whether or not the mean and standard deviation are as stated.The sample results were: $$\begin{array} { | l | c | } \hline \text { Category } & \text { Frequency } \\\hline \text { Under } 2 & 6 \\2 - \text { under } 6 & 32 \\6 \text {-under } 10 & 34 \\10 \text {-under } 14 & 14 \\14 \text {-under } 18 & 6 \\18 \text { or more } & 8 \\\hline\end{array}$$
-What is the expected frequency of the under 2 category?

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Definitions:

Door-in-the-Face Technique

A persuasion strategy where an initial, large request is made knowing it will be refused, followed by a smaller request, which is actually the desired outcome, making the second request seem more reasonable.

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denotes a position of authority or service in the government or related organization, held by an individual.

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A theory in social psychology suggesting that people strive for balance in their relationships and beliefs for cognitive consistency.

Pitchman

A person who promotes and sells a product or service, often using persuasive or catchy pitches, traditionally in a live setting but also often through media.