What Can Be Concluded from the Following Chi-Square Test for Independence

question 40

Multiple Choice

What can be concluded from the following chi-square test for independence result, $\chi$ ² (1, N = 102) = 0.17, p > 0.05?

• A) There is no evidence of dependency between the two variables.
• B) The variables tested are not independent of each other.
• C) One variable causes a difference in the other variable.
• D) There is a positive correlation between the variables.

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Definitions:

Inventory Turnover

A ratio that shows how many times a company's inventory is sold and replaced over a specified period, indicating the efficiency of inventory management.

Operating Cycle

The amount of time it takes for a business to purchase inventory, sell products, and receive cash in exchange for those products, reflecting the efficiency of a company's cash flow.

Accounts Receivable Turnover

A financial metric that assesses how efficiently a company collects on the credit it extends to customers by measuring how often receivables are collected during a period.

Accounts Receivable

Money owed to a company by its customers for goods or services delivered but not yet paid for.