A Large Value of a Chi-Squared Test Statistic in a Test

question 160

Short Answer

A large value of a chi-squared test statistic in a test of a contingency table leads you to conclude the two variables are ____________________.

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Definitions:

Degree of Financial Leverage

A measure that quantifies the sensitivity of a company's earnings per share to fluctuations in its operating income due to the use of fixed cost financing.

Earnings per Share

A company's net profit divided by the number of its common shares outstanding, indicating the company's profitability on a per-share basis.

EBIT

Earnings Before Interest and Taxes; a measure of a firm's profit that includes all expenses except interest and income tax expenses.

Sales

The activity of selling goods or services in exchange for money or other compensation.