To Compare the Effect of Weather on Sales of Soft $\neq$

question 11

Multiple Choice

To compare the effect of weather on sales of soft drinks, a soda manufacturer sampled two regions of the country with the following results. Is there a difference in sales between the 2 regions?
i. The null hypothesis is p_a - p_b > 0.
ii. The alternate hypothesis is p_a - p_b $\neq$ 0.
iii. The pooled estimate of the population proportion is 0.36.

• A) (i), (ii), and (iii) are all correct statements.
• B) (i) and (ii) are correct statements but not (iii).
• C) (i) and (iii) are correct statements but not (ii).
• D) (ii) and (iii) are correct statements but not (i).
• E) (ii) is a correct statement but not (i) and (iii).

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Definitions:

Tax Effect

The impact of taxation on business decisions, investments, and net income, considering both current and future taxes.

DFL

Degree of Financial Leverage; a measure that evaluates the sensitivity of a company's earnings per share to fluctuations in its operating income, highlighting the impact of financial leverage.

DOL

Degree of Operating Leverage, a measure of a company's operating risk by quantifying how a change in sales affects its operating income.

Earnings Per Share (EPS)

Earnings Per Share (EPS) is a financial metric that divides a company's profit attributable to each outstanding share of common stock, indicating the company's profitability.