Exhibit 12

question 95

Multiple Choice

Exhibit 12.2 A university has six colleges and takes a poll to gauge student support for a tuition increase.The university wants to insure each college is represented fairly.The below table shows the observed number students that participate in the poll from each college and the actual proportion of students in each college. Refer to Exhibit 12.2.Using the p-value approach and α = 0.01,the decision and conclusion are:

• A)Do not reject the null hypothesis;all proportions are equal to
• B)Do not reject the null hypothesis;cannot conclude that not all of the proportions are the same
• C)Reject the null hypothesis;at least one of the proportions is different from its hypothesized value
• D)Reject the null hypothesis;all of the proportions are not the same

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Definitions:

Return On Common Stockholders' Equity

A financial ratio that measures the profitability of a company from the perspective of common stockholders, calculated by dividing net income available to common shareholders by average common stockholder's equity.

Stockholders' Equity

The residual interest or ownership stake in a corporation's assets after deducting its liabilities, representing shareholders' claims on the company's assets.

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been deducted from total revenue.

Profit Margin Ratio

A financial metric that measures the percentage of revenue that exceeds the cost of goods sold, indicating the profitability of sales.