(p. 266). One key variable studied was a companys domestic return on sales (DROS), defined as pre-tax...

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(p. 266). One key variable studied was a company’s domestic return on sales (DROS), defined as pre-tax domestic income divided by total domestic sales. Recall that the companies studied had a mean DROS of .149 and a standard deviation of .189. Assume these values represent m and s, respectively. Suppose a financial accountant believes that the true mean DROS of these companies is actually higher than .149. To show this, he sampled 40 similar companies and found a sample mean DROS of .18. In your opinion, is this enough evidence to support the financial accountant’s claim? Explain.

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Statistics For Business And Economics

ISBN: 9781292413396

14th Global Edition

Authors: James McClave, P. Benson, Terry Sincich

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