In 1993, the Financial Accounting Standards Board (FASB) was considering a proposal to require
companies to report the potential effect of employees’ stock options on earnings per share (EPS). A
random sample of 41 high-technology firms revealed that the new proposal would reduce EPS by an
average of 13.8 percent, with a standard deviation of 18.9 percent. A random sample of 35 producers
of consumer goods showed that the proposal would reduce EPS by 9.1 percent on average, with a
standard deviation of 8.7 percent. On the basis of these samples, is it reasonable to conclude (at α =
0.10) that the FASB proposal will cause a greater reduction in EPS for high-technology firms than for
producers of consumer goods?
We do not do your homework for you. Although it might take more effort to do the work on your own, you will profit more from your effort. We will be happy to evaluate your work though.
This is what we call "homework dumping".