Anita Cruz Recently Assumed Responsibility for a Large Investment Portfolio $\alpha$

question 15

Multiple Choice

Anita Cruz recently assumed responsibility for a large investment portfolio. She wonders whether industry sector influences investment objective.Her staff prepared the following contingency table from a random sample of 200 common stocks.
Using $\alpha$ = .01,appropriate decision is ______________.

• A) reject the null hypothesis and conclude the two variables are not independent
• B) reject the null hypothesis and conclude the two variables are independent
• C) do not reject the null hypothesis and conclude the two variables are not independent
• D) do not reject the null hypothesis and conclude the two variables are independent
• E) do nothing

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Definitions:

Stock Split

A corporate action where a company divides its existing shares into multiple shares to boost the liquidity of the shares, although the overall value of the company does not change.

Common Stock

Equity securities that represent ownership in a corporation, giving holders voting rights and a share in the company's profits via dividends.

Outstanding

Unsettled or remaining due; not yet paid, resolved, or completed.

Stock Split

A decision by a company to increase the number of its outstanding shares by issuing more shares to current shareholders.