Question: Coca Cola's net income averaged $40 million per year with a standard deviation of $15 million (n = 6 %3D observations). Management claims that

Coca Cola's net income averaged $40 million per year with a standard

Coca Cola's net income averaged $40 million per year with a standard deviation of $15 million (n = 6 %3D observations). Management claims that Coca Cola's performance during the most recent cycle results from new approaches and that they should dismiss profitability expectations based on its average or normalized earnings of $34 million per year in prior cycles. 1) Determine whether or not to reject the null hypothesis at the 0.05 significance level. 2) What is the recommended investment decision?

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