The Table Below Gives Beverage Preferences for Random Samples of Teens

question 4

Multiple Choice

The table below gives beverage preferences for random samples of teens and adults. $$\begin{array} { l l l l } & \text { Teens } & \text { Adults } & \text { Total } \\\text { Coffee } & 50 & 200 & 250 \\\text { Tea } & 100 & 150 & 250 \\\text { Soft Drink } & 200 & 200 & 400 \\\text { Other } & 50 & 50 & 100 \\& 400 & 600 & 1000\end{array}$$ We are asked to test for independence between age (i.e., adult and teen) and drink preferences.The test statistic for this test of independence is

• A) 0.
• B) 8.4.
• C) 62.5.
• D) 82.5.

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Definitions:

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The cost associated with borrowing money, including interest payments and any other fees.

Tax Rate

The tax rate applicable to the income earned by individuals or corporations.

Straight-Line Depreciation

A method of calculating the depreciation of an asset by evenly spreading the cost over its expected useful life.

Depreciation Tax Shield

A deduction that reduces taxable income due to the depreciation of assets, thereby lowering one's tax liability.