The Arithmetic Calculations for the Test of Homogeneity and the Test

question 11

Essay

The arithmetic calculations for the test of homogeneity and the test of independenceare the same.
a) Explain in a few sentences what distinguishes these two hypothesis tests.
b) To illustrate your answer in part (a), give an example of a research question thatwould require a test of homogeneity, and an example that would require a test ofindependence. Briefly describe the aspects of your examples that illustrate thedistinguishing characteristics you mentioned in part (a).

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Definitions:

Elasticity of Demand

An analysis of consumer demand's elasticity in relation to the pricing of a commodity.

Subsidy

Financial support extended by the government to an economic sector (or institution, business, or individual) with the aim of promoting economic and social policy.

Highly Elastic

Refers to a strong responsiveness of the quantity demanded or supplied of a good to a change in its price.

Statutorily Granted

Pertains to rights or powers given or enforced by a legislative body or statute.