Recall that each of 49 firms that negotiated a reorganization plan with its creditors prior to filing for bankruptcy was classified in one of three categories: joint exchange offer with prepack, prepack solicitation only, and no prefiling vote held. Consider the quantitative variable length of time in bankruptcy (months) saved in the accompanying file. Is it reasonable to use a single number (e.g., mean or median) to describe the center of the time-in-bankruptcy distributions? Or should three "centers" be calculated, one for each of the three categories of prepack firms? Explain.
For Information: Refer to the Financial Management (Spring 1995) study of prepackaged bankruptcy filings, Exercise 2.32.