Shown Below Is a 2 × 3 Contingency Table with Observed

question 27

Essay

Shown below is a 2 × 3 contingency table with observed values from a random sample of size 500. At 95% confidence, test for independence of the row and column factors. $$\begin{array} { c | c c c } & { \text { Column Factor } } \\\text { Row Factor } & x & y & z \\\hline \text { A } & 40 & 50 & 110 \\\text { B } & 60 & 100 & 140\end{array}$$

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Definitions:

Rescission

The legal action of cancelling, terminating, or annulling a contract, restoring the parties to their original positions prior to the agreement.

Surety

A person or entity that takes responsibility for another's performance of an undertaking, such as fulfilling the terms of a contract.

Fraud

A deliberate deception practiced to secure unfair or unlawful gain.

Article 9

A provision under the Uniform Commercial Code (UCC) dealing with secured transactions in personal property, where a creditor has a security interest in the debtor's property.