A Variable Contains Five Categories $\alpha$ = 01, the Appropriate Decision Is _______

question 42

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 appropriate decision is _______.

• A)reject the null hypothesis that the observed distribution is uniform
• B)reject the null hypothesis that the observed distribution is not uniform
• C)do not reject the null hypothesis that the observed distribution is uniform
• D)do not reject the null hypothesis that the observed distribution is not uniform
• E)do nothing

---

Definitions:

Levered Firm

A company that uses debt in addition to equity in its capital structure, often to finance operations and grow.

Unlevered Firm

A business that operates without any debt financing, using only equity for its operations and investments.

Rate of Return

The gain or loss on an investment over a specified period, expressed as a percentage of the investment's cost.

Homemade Leverage

The use of personal borrowing to adjust the overall level of financial leverage that an individual utilizes in their investments.