A Variable Contains Five Categories $\alpha$ = 01, the Degrees of Freedom for This Test Are _______

question 66

Multiple Choice

A variable contains five categories.It is expected that data are uniformly distributed across these five categories.To test this, a sample of observed data is gathered on this variable resulting in frequencies of 27, 30, 29, 21, and 24.Using $\alpha$ = .01, the degrees of freedom for this test are _______.

• A)5
• B)4
• C)3
• D)2
• E)1

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Definitions:

Market Shares

The portion of a market controlled by a particular company or product, typically expressed as a percentage of the total market.

Four-Firm Concentration Ratio

An economic measure that assesses the concentration of business within an industry, represented by the combined market share of the four largest firms.

Effective Cartel

An organization of producers that agree to coordinate prices and production to monopolize a market or maximize collective profits.

Pure Monopoly

A market structure where a single seller dominates the market, there are no close substitutes for the product, and barriers to entry are high, preventing competition.