Suppose a Random Sample of 1,220 U

question 23

Multiple Choice

Suppose a random sample of 1,220 U.S. adults were asked about their opinion regarding federal spending on public education. Respondents were asked whether federal spending on public education was (a) too low, (b) adequate, or (c) too high. Respondents were classified by income level. Choose the correct hypotheses to test whether there is an association between the response to the question and income level.

• A)H0: There is no difference between the proportions of U.S. adults who responded (a), (b)or (c)to the opinion question. H_a: There is a difference between the proportions of U.S. adults who responded (a), (b)or (c)to the opinion question.
• B)H0: Among U.S. adults, opinions about federal spending on education and income level are associated. H_a: Among U.S. adults, opinions about federal spending on education and income level are independent.
• C)H0: Among U.S. adults, opinions about federal spending on education and income level are independent. H_a: Among U.S. adults, opinions about federal spending on education and income level are associated.
• D)None of these

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Definitions:

NPV

Net Present Value - a financial metric used to evaluate the profitability of an investment or project, taking into account the time value of money by discounting future cash flows.

Cash Flow

This refers to the movement of money into and out of a business, and is critical for assessing the liquidity and operational efficiency of the company.

Discount Rate

The rate of interest that is utilized in a DCF analysis for calculating the current value of anticipated cash flows.

NPV

Net Present Value is a method used in capital budgeting to evaluate the profitability of an investment or project by calculating the difference between the present value of cash inflows and the present value of cash outflows.