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Solution: History of corporate acquisitions. Refer to the
Chapter 7, Problem 71E(choose chapter or problem)
History of corporate acquisitions. Refer to the Academy of Management Journal (Aug. 2008) investigation of the performance and timing of corporate acquisitions, Exercise 6.53 (p. 326). Recall that the investigation discovered that in a random sample of 2,778 firms, 748 announced one or more acquisitions during the year 2000. Does the sample provide sufficient evidence to indicate that the true percentage of all firms that announced one or more acquisitions during the year 2000 is less than 30%? Use \(\alpha = .05\) to make your decision.
Text Transcription:
alpha = .05
Questions & Answers
QUESTION:
History of corporate acquisitions. Refer to the Academy of Management Journal (Aug. 2008) investigation of the performance and timing of corporate acquisitions, Exercise 6.53 (p. 326). Recall that the investigation discovered that in a random sample of 2,778 firms, 748 announced one or more acquisitions during the year 2000. Does the sample provide sufficient evidence to indicate that the true percentage of all firms that announced one or more acquisitions during the year 2000 is less than 30%? Use \(\alpha = .05\) to make your decision.
Text Transcription:
alpha = .05
ANSWER:Solution
Step 1 of 3
We have to explain whether the sample provides the sufficient evidence to indicate that the true percentage of all firms that announced one or more acquisitions during the year 2000 is less than 30%
The null hypothesis
The alternative hypothesis ( left tailed test )
From a random sample of 2778 firms, 748 announced one or more acquisitions during the year 2000 here x=748 and n=2778
Then the sample proportion
=748/2778
=0.2693