At the beginning of this chapter, the term Quadro-phobia was defined as the apparent aversion that many

Question:

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 Quadro phobia is evident.

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

Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...