Two contingency tables below show return on investment (ROI) and percent of sales growth over the previous 5 years for 85 U.S. rms. ROI is defined as percentage of return on a combination of stockholders' equity (both common and preferred) plus capital from long-term debt including current maturities, minority stockholders' equity in consolidated subsidiaries, and accumulated deferred taxes and investment tax credits. Research question: At α = .05, is ROI independent of sales growth? Would you expect it to be? Do the two tables (2 × 2 and 3 × 3) agree? Are small expected frequencies a problem?

  • CreatedAugust 19, 2015
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