Four Types of Bicycle Tires Are Ridden in Six Different $\chi$

question 16

Multiple Choice

Four types of bicycle tires are ridden in six different cities to see if the tires lasted about the same number of miles.If there are differences, then that tire could promote its durability to potential customers.Using the data in the table below and an alpha of 0.05, what is the observed value of $\chi$ ²? $$\begin{array} { l c c c c } & \text { Tire A } & \text { Tire B } & \text { Tire C } & \text { Tire D } \\\text { City 1 } & 105 & 157 & 112 & 119 \\\text { City 2 } & 142 & 124 & 132 & 144 \\\text { City 3 } & 133 & 121 & 138 & 130 \\\text { City 4 } & 98 & 136 & 110 & 119 \\\text { City 5 } & 114 & 141 & 95 & 128 \\\text { City 6 } & 117 & 138 & 129 & 140\end{array}$$

• A)77.82
• B)5.00
• C)84.67
• D)9.35
• E)4.00

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Definitions:

Default Risk

The risk associated with the possibility of a borrower failing to make required payments on their debt obligations.

Interest Rate Risk Premium

The compensation investors demand for bearing interest rate risk.

Term Structure

The relationship between interest rates or bond yields and different terms or maturities.

Duration

Duration is a measure of the sensitivity of the price of a bond or other debt instrument to changes in interest rates, typically expressed in years.