At the beginning of this chapter, the term quadrophobia was defined as the apparent aversion that many

Question:

At the beginning of this chapter, the term quadrophobia was defined as the apparent aversion that many firms seem to have of arriving at earnings-per-share calculations that end with the digit “4.” Here’s your chance to investigate the presence of the quadrophobia phenomenon. Suppose you reviewed 1,000 earnings statements from randomly selected companies and found the following frequency distribution for the final digits for earnings per share:

Final Digit Frequency Final Digit Frequency 0 116 5 106 1 100 6 105 2 81 7 106 3 80 8 110 4 80 9 116

a. Using a = 0.05, determine if the presence of quadrophobia is evident.

b. Determine the p-value using Excel and interpret its meaning.

AppendixLO1

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Business Statistics

ISBN: 9780133852288

2nd Edition

Authors: Robert A Donnelly, Robert Donnelly Jr

Question Posted: