Anita Cruz Recently Assumed Responsibility for a Large Investment Portfolio $\alpha$

question 60

Multiple Choice

Anita Cruz recently assumed responsibility for a large investment portfolio.She wonders whether the industry sector influences investment objective.Her staff prepared the following contingency table from a random sample of 200 common stocks. Using $\alpha$ = .05, critical chi-square value is ______________.

• A)9.21
• B)7.88
• C)15.09
• D)5.99
• E)7.89

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Definitions:

Prepaid Item

An expense paid in advance and recorded as an asset until it is actually used or consumed.

Adjusting Entry

Financial records established at the conclusion of an accounting term to assign earnings and costs to the period they truly belong.

Insurance Expense

The cost incurred by a business or individual for purchasing insurance policies to protect against potential losses or liabilities.

Prepaid Insurance

An asset account that represents insurance expenses paid in advance and is recognized as an expense over the period the insurance contract covers.