Solve the Problem $\chi ^ { 2 }$ Values Can Be Approximated as Follows

question 12

Multiple Choice

Solve the problem. For large numbers of degrees of freedom, the critical $\chi ^ { 2 }$ values can be approximated as follows: $\chi ^ { 2 } = \frac { 1 } { 2 } ( z + \sqrt { 2 k - 1 } ) ^ { 2 }$ where k is the number of degrees of freedom and z is the critical value. To find the lower critical value, the negative z-value is used, to find the upper critical value, the positive z-value is used. Use this approximation to estimate the critical value of $x ^ { 2 }$ in a right-tailed hypothesis test with n=143 and $\alpha = 0.01$

• A) \(\chi ^ { 2 } = 183.411\)
• B) \(\chi ^ { 2 } = 189.286\)
• C) \(\chi ^ { 2 } = 188.134\)
• D) \(\chi ^ { 2 } = 184.549\)

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Definitions:

Amortization

The gradual reduction of a debt or the spreading out of capital expenses for intangible assets over a specific period of time.

Bond Payable

A bond payable is a long-term liability where a borrower agrees to pay back a fixed amount of funds at a future date, along with periodic interest payments.

Interest Expense

The cost incurred by an entity for borrowed funds, represented as interest payments on debts such as loans, bonds, or lines of credit.

Discount

The excess of the face amount of bonds over their issue price or the excess of the par value of stock over its issue price.