A New Policy of "Flex Hours" Is Proposed

question 97

Multiple Choice

A new policy of "flex hours" is proposed. Random sampling showed that 28 of 50 female workers favored the change, while 22 of 50 male workers favored the change. Management wonders if there is a difference between the two groups. For a test comparing the two proportions, the assumption of normality for the difference of proportions is:

• A)clearly justified.
• B)clearly unjustified.
• C)a borderline call.

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Definitions:

Stock Split

An action by a company to divide its existing shares into multiple shares to boost the liquidity of the shares, though the overall value of ownership remains the same.

Total Market Value

The aggregate valuation of a company or asset in the marketplace, calculated by multiplying the current market price of its shares by the total number of shares outstanding.

Price Following Split

The adjusted price of a stock after the company carries out a stock split, intended to make the stock more affordable to investors.

Residual Dividend Policy

A strategy where dividends to shareholders are paid from the residual or leftover equity once all project and operational costs have been met.