The Annual Dividend Rates for a Random Sample of 16

question 28

Multiple Choice

The annual dividend rates for a random sample of 16 companies in three different industries, utilities, banking, and insurance were recorded. The ANOVA comparing the mean annual dividend rate among three industries rejected the null hypothesis that the dividend rates were equal. The Mean Square Error (MSE) was 3.36. The following table summarized the results: The interval is [3.38, 8.18]. Based on the comparison between the mean annual dividend rate for companies in the utilities and insurance industries, _______________________.

• A) a confidence interval shows that the mean annual dividend rates are not significantly different
• B) the ANOVA results show that the mean annual dividend rates are significantly different
• C) a confidence interval shows that the mean annual dividend rates are significantly different
• D) the ANOVA results show that the mean annual dividend rates are not significantly different

---

Definitions:

Cash Receipts

The collection of money, either in the form of cash or checks, received by a business during its operations.

Receivables Period

The median days a company waits to receive money owed by customers for goods or services delivered on credit.

Payables Period

The payables period is a financial metric that indicates the average time it takes for a company to pay its suppliers and vendors.

Accounts Payable Balance

The total amount of money a company owes to its suppliers or vendors for products and services purchased on credit.