A Company Wants to Determine If Its Employees Have Any $x _ { 0 } ^ { 2 }$

question 9

Multiple Choice

A company wants to determine if its employees have any preference among 5 different health plans which it offers to them. A sample of 200 employees provided the data below. Find the critical value $x _ { 0 } ^ { 2 }$ to test the claim that the probabilities show no preference. Use $\alpha$

=0.01 .
$\begin{array} { l | c l l l l } \text { Plan } & 1 & 2 & 3 & 4 & 5 \\\hline \text { Employees } & 30 & 55 & 32 & 18 & 65\end{array}$

• A) 13.277
• B) 9.488
• C) 11.143
• D) 14.860

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Definitions:

Firm Commitment Underwriting

An arrangement where an underwriter guarantees to purchase all securities offered by an issuer and assumes the risk of selling them to the market.

Underwriter

An entity that assesses and accepts financial risk on behalf of clients, often seen in contexts such as insurance and initial public offerings.

Financial Responsibility

The obligation to manage financial resources prudently, including paying debts and making informed financial decisions.

Dutch Auction Underwriting

A method of public offering in which the price of the offering is set after taking all bids and determining the highest price at which the total offering can be sold.