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

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Definitions:

Transportation to Consignees

The costs incurred to transport goods to consignees, who will sell the goods on behalf of the shipping party.

Cost Recovery Method

An accounting technique used to defer the recognition of income until the cash received from a transaction exceeds the costs associated with it.

Realized Gross Profit

The gross profit that is actually earned and recognized on sales transactions, after the cost of goods sold has been deducted.

Cash Collections

The process of gathering and managing the cash from sales, financing, or other sources of revenue for a business.