Comprehensive Learning Assessment 1 CLO 1, CLO 2, CLO 3, CLO 4
In an article in the Journal of Retailing, Kumar, Kerwin, and Pereira noted factors affecting merger and acquisition activity in retailing. As part of the study, the authors compared the characteristics of target firms (firms targeted for acquisition) and bidder firms (firms attempting to make acquisitions). Among the variables studied in the comparison were earnings per share, debt-to-equity ratio, growth rate of sales, market share, and extent of diversification.
1. Let be the mean growth rate of sales for all target firms (firms that have been targeted for acquisition in the last five years and that have not bid on other firms), and assume growth rates are approximately normally distributed. Furthermore, suppose a random sample of 25 target firms yields a sample mean sales growth rate of 0.16 with a standard deviation of 0.12. Use critical values and this sample information to test H0: = .10 versus Ha: >.10 by setting equal to .10, .05, .01, and .001. How much evidence is there that the mean growth rate of sales for target firms exceeds .10 (that is, exceeds 10 percent)?
2. Now let be the mean growth rate of sales for all firms that are bidders (firms that have bid to acquire at least one other firm in the last five years), and again assume growth rates are approximately normally distributed. Furthermore, suppose a random sample of 25 bidders yields a sample mean sales growth rate of 0.12 with a standard deviation of 0.09. Use critical values and this sample information to test H0: = .10 versus Ha: > .10 by setting equal to .10, .05, .01, and .001. How much evidence is there that the mean growth rate of sales for bidders exceeds .10 (that is, exceeds 10 percent)?
Please provide your work in detail and include in-text citations. Justify use of the statistic in answering the above questions. At least five (6) references are required for PAs and CLAs
Note:
1. Paper needs to be formatted in APA 7th edition
2. Explain your work in detail and provide an in-text citation.
3. Need to have at least 6 peer-reviewed articles as the references (Recommend to find the articles from ProQuest.
4. Need to include the textbook as the references.
6. Please find the textbook and class PPTs in the attachment section.
7. Textbook Information:
Bowerman, B., Drougas, A. M., Duckworth, A. G., Hummel, R. M. Moniger, K. B., & Schur, P. J. (2019). Business statistics and analytics in practice (9th ed.). McGraw-Hill
ISBN 9781260187496
8. Justify use of the statistic in answering the above questions
9. Please find the Course Learning Outcome list of this course in the attachment
