Use the Following Information to Answer the Question -Suppose a Random Sample of 1,220 U

question 28

Multiple Choice

Use the following information to answer the question. A dowsing rod is a "Y" or "L" shaped instrument that some believe can find ground water. Many dowsers today use a pair of simple L-shaped metal rods. One rod is held in each hand, with the short arm of the L held upright, and the long arm pointing forward. When something is found, the rods cross over one
another making an "X" over the found object. Skeptics of dowsing conducted an experiment to see if dowsing rods could find ground water. Five identical 3 foot by 3 foot plots of land were sectioned off and a container of water was buried in one of the plots. Below is a summary of the experiment results and the output for the goodness-of-fit test. $\begin{array}{l|c|c} & \begin{array}{c}\text { Correctly identified } \\\text { location of ground water }\end{array} & \begin{array}{l}\text { Incorrectly identified } \\\text { location of ground water }\end{array} \\\hline \text { Observed } & 21 & 57 \\\hline \text { Expected } & 15.6 & 62.4\end{array}$


$\begin{array} { l } \chi ^ { 2 } \text { GOF-Test } \\\chi ^ { 2 } = 2.336538462 \\p = 1263700849 \\\text { d.f. } = 1 \\\text { CNTRB } = \{ 1.86923 \ldots\end{array}$
-Suppose a random sample of 1,220 U.S. adults were asked about their opinion regarding federal spending on infrastructure (i.e. roads and bridges) . Respondents were asked whether federal spending on infrastructure was (a) too low, (b) adequate, or (c) too high. Respondents were classified by income level. Choose the correct hypotheses to test whether there is an association
Between the response to the question and income level.

• A) \(\mathrm { H } _ { 0 }\) : There is no difference between the proportions of U.S. adults who responded (a), (b) or (c) to the opinion question.
• \(\mathrm { H } _ { \mathrm { a } }\) : There is a difference between the proportions of U.S. adults who responded (a), (b) or (c) to the opinion question.
• B) \(\mathrm { H } _ { 0 }\) : Among U.S. adults, opinions about federal spending on infrastructure and income level are independent.
• \(\mathrm { H } _ { \mathrm { a } }\) : Among U.S. adults, opinions about federal spending on infrastructure and income level are associated.
• C) \(\mathrm { H } _ { 0 }\) : Among U.S. adults, opinions about federal spending on infrastructure and income level are associated.
• \(\mathrm { H } _ { \mathrm { a } }\) : Among U.S. adults, opinions about federal spending on infrastructure and income level are independent.
• D) None of these

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Definitions:

Average Accounting Return

A financial metric that calculates the average profits earned on investments relative to the book value of assets over a certain period.

Mutually Exclusive Investments

Investment options where the choice of one option precludes the selection of another, requiring careful analysis to determine the most beneficial choice.

Incorrect Decisions

Decision-making instances that lead to unfavorable outcomes or failures due to errors in judgement, analysis, or implementation.

Target AAR

Target Average Annual Return (AAR) is a financial goal or benchmark for the average yearly return on an investment.