A Random Sample of 40 Companies with Assets Over $10

question 44

Multiple Choice

A random sample of 40 companies with assets over $10 million was surveyed and asked to indicate their industry and annual computer technology expense. The ANOVA comparing the average computer technology expense among three industries rejected the null hypothesis. The Mean Square Error (MSE) was 195. The following table summarized the results: Based on the comparison between the mean annual computer technology expense for companies in the education and tax services industries, _________________.

• A)A confidence interval shows that the mean annual computer technology expenses are not significantly different
• B)The ANOVA results show that the mean annual computer technology expenses are significantly different
• C)A confidence interval shows that the mean annual computer technology expenses are significantly different
• D)The ANOVA results show that the mean annual computer technology expenses are not significantly different

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Definitions:

ROE

Return on Equity, a financial ratio indicating the profitability of a corporation in relation to stockholders’ equity, showing how well the company uses investments to generate earnings growth.

EPS

Earnings Per Share, a company's profit divided by the number of outstanding shares of its common stock, indicating the company's profitability.

EBIT

Earnings Before Interest and Taxes, a measure of a company's profit that includes all incomes and expenses except interest and income tax expenses.

ROCE

Return on Capital Employed; a measure of a company's profitability in relation to its capital, indicating how efficiently capital is being utilized to generate profits.