The Following Are the Hypotheses for a Test of the Claim

question 46

Multiple Choice

The following are the hypotheses for a test of the claim that college graduation statue and cola preference are independent. $H _ { 0 }$ : College graduation status and cola preference are independent.
$H _ { 1 }$ : College graduation status and cola preference are dependent.
If the test statistic: $\chi ^ { 2 } = 0.579$ and the critical value is $\chi ^ { 2 } = 5.991$ , what is your conclusion about the null hypothesis and about the claim?

• A) Fail to reject the null hypothesis. There is sufficient evidence to warrant rejection of the claim that college graduation status and cola preference are independent.
• B) Reject the null hypothesis. There is sufficient evidence to warrant rejection of the claim that college graduation status and cola preference are independent.
• C) Reject the null hypothesis. There is not sufficient evidence to warrant rejection of the claim that college graduation status and cola preference are independent.
• D) Fail to reject the null hypothesis. There is not sufficient evidence to warrant rejection of the claim that college graduation status and cola preference are independent.

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Definitions:

Marginal Value

The extra benefit or pleasure derived from using or making an additional unit of a product or service.

Demand Curves

Graphs that illustrate the relationship between the price of a good and the quantity demanded by consumers at those prices.

Price Discriminate

A practice where a seller charges different prices to different customers for the same product or service, often based on the willingness to pay.

Revenue

The total income generated from the sale of goods or services related to a company's primary operations.