TABLE 12-16 As Part of an Evaluation Program, a Sporting Goods Retailer

question 141

Short Answer

TABLE 12-16
As part of an evaluation program, a sporting goods retailer wanted to compare the downhill coasting speeds of 4 brands of bicycles. She took 3 of each brand and determined their maximum downhill speeds. The results are presented in miles per hour in the table below.

-Referring to Table 12-16, the decision rule for a level of significance of 0.05 using the Kruskal-Wallis test is to reject the null hypothesis if the test statistic H is ________ assuming that the sample sizes are large enough to use a chi-square approximation.

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Definitions:

Operating Assets

Resources owned by a business that are used in its day-to-day operations to generate income.

Residual Income

Income that remains after subtracting all the cost of capital from the net operating profit.

Investment Opportunity

Any vehicle through which funds can be invested to potentially earn a return, such as stocks, bonds, real estate, or a business venture.

Minimum Required Rate

Often refers to the minimum rate of return that an investment must offer to be considered viable or the minimum acceptable compensation for delay or risk.