A Gasoline Distributor Wonders Whether an Individual's Income Level Influences $\alpha$

question 57

Multiple Choice

A gasoline distributor wonders whether an individual's income level influences the grade of gasoline purchased.The following is a contingency table from a random sample of 300 individuals. Using $\alpha$ = .05, observed chi-square value is ______________.

• A)15.79
• B)4.44
• C)32.89
• D)51.79
• E)5.79

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Definitions:

Multiple Rates Of Return

A situation where an investment has more than one internal rate of return due to differing cash flow patterns over time.

Required Rate Of Return

The minimum annual percentage earnings needed from an investment to make it worthwhile, factoring in risk.

IRR

An investment's IRR represents the discount rate that makes the sum of all future cash flows (positive and negative) from the investment equal to zero, effectively measuring its annual growth rate.

NPV

Net Present Value; the difference between the present value of cash inflows and the present value of cash outflows over a period of time.