The HR Department Tested How Long Employees Stay with the Company

question 39

True/False

The HR department tested how long employees stay with the company in their current positions. A random sample of 50 employees yielded a mean of 2.79 years and σ = .76. The sample evidence indicates that the average time is less than 3 years and is significant at α = .01.

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Definitions:

Nonparticipating Preferred Stock

A type of preferred stock that does not entitle the shareholder to share in the company’s extra earnings beyond the fixed dividend payment.

Cumulative

Referring to a total that increases over time by adding successive amounts.

Callable

a feature of a financial security that allows the issuer to repurchase or redeem the security before its maturity date.

Stock Dividend

A dividend payment made to shareholders in the form of additional shares, rather than cash.