a. Set up the null and alternative hypotheses needed to test whether the mean debt-to-equity ratio for
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b. Calculate a 95 percent confidence interval for the difference between the mean debt-to-equity ratios for "target firms" and "bidder firms." Interpret the interval.
c. Based on the results of this exercise and Exercise 10.55, does a firm's earnings µer share or the firm's debt-to-equity ratio seem to have the most influence on whether a firm will be a "target" or a "bidder"? Explain.
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Related Book For
Business Statistics In Practice
ISBN: 9780073401836
6th Edition
Authors: Bruce Bowerman, Richard O'Connell
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