If You Wanted to Find Out If Alcohol Consumption (Measured $\chi ^ { 2 }$

question 240

Short Answer

If you wanted to find out if alcohol consumption (measured in fluid oz.) and grade point average on a 4-point scale are linearly related, you would perform a a. $\chi ^ { 2 }$ test for the difference in two proportions.
b. $\chi ^ { 2 }$ test for independence.
c. a $\mathrm { Z }$ test for the difference in two proportions.
d. a $t$ test for a correlation coefficient.

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Definitions:

Open Market Operations

These are financial activities where central banks buy or sell government securities in the open market to control the money supply and influence interest rates.

Required Reserve Ratio

The fraction of deposits that a bank is mandated by regulations to hold in reserve and not loan out.

Excess Reserves

The amount of reserves that a bank holds beyond the required minimum, which can be loaned out to generate earnings.

Open Market Operations

A monetary policy tool used by central banks to control the money supply by buying or selling government securities in the open market.