I a Goodness-Of-Fit Test Is a Nonparametric Test Involving a Set

question 28

Multiple Choice

i. A goodness-of-fit test is a nonparametric test involving a set of observed frequencies and a corresponding set of expected frequencies.
Ii) For a goodness-of-fit test, the following are possible null and alternate hypotheses: Null: Sales are uniformly distributed among the five locations; Alternate: Sales are not uniformly distributed among the five locations.
Iii) In the goodness-of-fit test, the chi-square distribution is used to determine how well an observed set of observations "fits" an "expected" set of observations.

• A) (i), (ii) and (iii) are all correct statements
• B) (i) and (ii) are correct statements, but not (iii).
• C) (i) and (iii) are correct statements but not (ii).
• D) (ii) and (iii) are correct statements but not (i).
• E) All statements are false

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Definitions:

Arbitrage Opportunity

A situation where a trader can profit from differences in price of the same asset in different markets by simultaneously buying and selling it.

Profit

The financial benefit that is realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Inflation Rate

The rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.