Which of the Following Tests Is Appropriate for Nominal Data

question 17

Multiple Choice

Which of the following tests is appropriate for nominal data if the problem objective is to describe a population with more than two categories?

• A) z-test for one proportion,p,or difference of two proportions,p₁ -p₂.
• B) chi-squared goodness-of-fitness test.
• C) chi-squared test of a contingency table.
• D) All of these choices are true.

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Definitions:

Net Income

The total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.

Stock Options

Financial derivatives that give the holder the right, but not the obligation, to buy or sell a stock at a predetermined price within a certain period.

Vesting Period

The period of time before shares are unconditionally owned by an employee in an employee stock option plan.

GAAP

General Accepted Accounting Principles, a standard framework of guidelines for financial accounting used in any jurisdiction, including the detailed standards and rules developed by the Financial Accounting Standards Board in the U.S.