At the beginning of this chapter the term quadro phobia was
At the beginning of this chapter, the term quadro-phobia 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 quadro-phobia 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:
a. Using α = 0.05, determine if the presence of quadrophobia is evident.
b. Determine the pvalue using Excel and interpret its meaning.
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