TABLE 12-12
Recent Studies Have Found That American Children

question 156

Multiple Choice

TABLE 12-12
Recent studies have found that American children are more obese than in the past. The amount of time children spent watching television has received much of the blame. A survey of 100 ten-year-olds revealed the following with regards to weights and average number of hours a day spent watching television. We are interested in testing whether the average number of hours spent watching TV and weights are independent at 1% level of significance.
$\begin{array}{l|ccc|r} &{\text { TV Hours }} & \\\text { Weights } & 0-3 & 3-6 & 6+ & \text { Total } \\\hline \text { More than 10 lbs. Overweight } & 1 & 9 & 20 & 30 \\\text { Within 10 lbs. of normal weight } & 20 & 15 & 15 & 50 \\\text { More than 10 lbs. underweight } & 10 & 5 & 5 & 20 \\\hline \text { Total } & 31 & 29 & 40 & 100\end{array}$

-Referring to Table 12-12, the critical value of the test will be

• A) 21.666.
• B) 14.860.
• C) 6.635.
• D) 13.277.

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Definitions:

Depreciation

The process by which capital assets lose value over time due to use, wear and tear, or obsolescence.

Capital Stock

The total amount of physical goods or financial assets that a company possesses which are used in the production of goods and services.

Gross Investment

The total amount of money spent on capital assets before accounting for depreciation.

Net Investment

The amount spent by a company on new capital assets after accounting for depreciation.