A Random Sample of 160 Car Purchases Are Selected and Categorized

question 19

Multiple Choice

A random sample of 160 car purchases are selected and categorized by age. The results are listed below. The age distribution of drivers for the given categories is $18 \%$ for the under 26 group, $39 \%$ for the $26 - 45$ group, $31 \%$ for the 45-65 group, and $12 \%$ for the group over 65 . Calculate the chi -square test statistic $\chi ^ { 2 }$ to test the claim that all ages have purchase rates proportional to their driving rates. Use $\alpha = 0.05$ .
$\begin{array}{l|cccc}\text { Age } & \text { Under 26 } & 26-45 & 46-65 & \text { Over } 65 \\\hline \text { Purchases } & 66 & 39 & 25 & 30\end{array}$

• A) \(75.101\)
• B) \(85.123\)
• C) \(101.324\)
• D) \(95.431\)

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Definitions:

Revaluation Model

An accounting method allowing for the increase or decrease of an asset's value on the balance sheet, based on current fair values.

Fair Value

The price at which an asset could be exchanged or a liability settled between knowledgeable, willing parties in an arm's length transaction.

Gain on Sale

The financial profit gained from selling an asset for more than its book value.

Opening Retained Earnings

The amount of retained earnings at the beginning of a financial period, representing the accumulated profits that have not been distributed to shareholders as dividends.