The Annual Dividend Rates for a Random Sample of 16 $\pm$

question 81

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:
Compare the mean annual dividend rate for companies in the utilities and insurance industries and construct the 95% confidence interval.

• A) 5.78 \(\pm\) 2.160 * 2.40
• B) 5.78 \(\pm\) 2.120 * 2.40
• C) 5.78 \(\pm\) 2.160 * 1.11
• D) 5.78 \(\pm\) 2.120 * 1.11

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Definitions:

Price-discriminating Monopolist

A monopolist that sells the same product at different prices to different groups of consumers, usually to maximize profits by capturing consumer surplus.

Market

A place or mechanism through which buyers and sellers interact to trade goods, services, or assets, facilitating the determination of prices and the exchange of ownership.

Price Elasticity

An indicator of the sensitivity of consumer demand for a product to variations in its price, reflecting how significantly the amount of the product consumers want to buy alters with price adjustments.

Raise Profits

Strategies or actions undertaken by a firm to increase the difference between its total revenues and total costs.