I for a Goodness-Of-Fit Test, the Number of Degrees of Freedom

question 65

Multiple Choice

i. For a goodness-of-fit test, the number of degrees of freedom is determined by k - 2, where k is the number of categories.
ii. The sum of the expected frequencies in a goodness-of-fit test need not equal the sum of the observed frequencies.
Iii) If the computed value of chi-square is less than the critical value, reject the null hypothesis at a predetermined level of significance.

• 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:

Operating Lease

A lease agreement allowing the use of an asset without ownership, typically with lower monthly payments and shorter terms than a capital lease.

Off-Balance Sheet Financing

Financial obligations not recorded on the balance sheet of a company, used to keep debt levels low from a reporting perspective.

Financial Leverage

The use of borrowed funds in order to amplify returns from an investment.

Leasing

A financial arrangement where a firm or individual obtains the use of an asset for a specific period in exchange for payment, typically without owning the asset.