A Goodness of Fit Test Is to Be Performed to See

question 16

Multiple Choice

A goodness of fit test is to be performed to see if consumers prefer any of three package designs (A, B, and C) more than the other two.A sample of 60 consumers is used.What is the expected frequency for category A?

• A)1/3
• B)20
• C)60
• D)10
• E)30

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Definitions:

Deferral Period

A span of time during which payments, especially loan or insurance premiums, are postponed.

Compounded Monthly

The method of calculating interest where both the initial principal and the accumulated interest from prior months are considered in each month's interest calculation.

Annuity

A financial product that pays out a fixed stream of payments to an individual, typically used as an income stream for retirees.

Annually Compounded

The process where interest is calculated on both the initial principal and the accumulated interest over the year.