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The Following Data Represent Scores on a 15-Point Aptitude Test

question 176

Essay

The following data represent scores on a 15-point aptitude test: 8, 10, 15, 12, 14, and 13. Subtract 5 from every observation and compute the sample mean for both the original data and the new data. What effect, if any, does subtracting 5 from every observation have on the sample mean?


Definitions:

Common Stock

A type of equity security that represents ownership in a corporation, with holders typically having voting rights and entitlement to dividends.

No-par Value

Refers to stocks issued without a nominal or face value, where the market value is determined by investor demand.

Legal Capital

The minimum amount of capital that a company must maintain as required by law, often to protect creditors.

Dividend Rate

The total dividends declared by a company over a period, usually a year, divided by the number of outstanding shares.

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