Measuring Reaction Time Researchers at the University of Mississippi wanted to discover whether variability for reaction time to a go/no go stimulus of males was different from that of females. The researchers randomly selected 20 females and 15 males to participate in the study. The go/no go stimulus required the student to respond to a particular stimulus and not to respond to other stimuli. The data are as follows:

Normal probability plots indicate that the requirement of normality is satisfied. The output shown is from a TI-84 Plus C.

(a) Use the results to determine whether there is a difference in variability of reaction time in males and females at the level of significance.

(b) Draw boxplots of each data set, using the same scale. Does this visual evidence support the results obtained in part (a)?

At the end of its most recent fiscal year, Shangri-La Company owned the following investments.

Other assets had a book value of $2.4 million and liabilities had a book value of $2.8 million. Shangri-La’s net income for 2004 was $280,000. If the company sold investment A at the end of the year for cash, what effect would the sale have on its financial statements and return on assets (ignoring the effect of income taxes)? Assume that assets are reported on the financial statements at historical cost. What effect would the sale of investment B have on the company’s financial statements and return on assets? Compare these amounts to those that would be reported if no investments were sold. Does this example help explain why mark-tomarket accounting is often required by GAAP? Discuss.