What Inferences About the Relation Between Income and Oven Ownership

question 52

Multiple Choice

What inferences about the relation between income and oven ownership may be drawn from the data above?

• A)No inferences can be made without performing a hypothesis test.
• B)The higher the income, the fewer the number of ovens owned.
• C)A higher proportion of people in the lower income bracket own microwave ovens.
• D)A higher proportion of those in the higher income bracket own microwave ovens.
• E)In absolute terms, the ownership of conventional ovens seems to decline with income, while that of microwaves appears to
• Increase.

---

Definitions:

Risk Free Rate

The theoretical return on investment with zero risk of financial loss, often represented by the yield on government bonds from stable governments.

Standard Deviation

A measure of the dispersion or variability in a set of values, often used to quantify the risk associated with a particular investment.

Systematic Risk

The underlying threat to the entire market or a specific market sector that cannot be alleviated by spreading out investments.

Business Cycle

Repetitive cycles of recession and recovery.