The Residual, or the Difference, Between the Observed Frequency and the Expected

question 49

Multiple Choice

The residual, or the difference, between the observed frequency and the expected frequency is a reliable indicator. A standardized residual can also be computed for each
Cell. Which statements are true about standardized residuals?

• A) Standardized residuals that have a positive value mean that the cell was over-
• Represented in the actual sample, compared to the expected frequency.
• B) The standardized residual can be compared against the critical z-value for your α
• Level to determine significance.
• C) Standardized residuals can be used to test the null hypothesis that the actual
• Frequency equals the expected frequency for a specific cell versus the research
• Hypothesis of a difference greater than zero.
• D) Standardized residuals that have a negative value mean that the cell was under-
• Represented in the actual sample, compared to the expected frequency.
• E) All of the above.

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Definitions:

Merchandising Company

A business that purchases goods wholesale and resells them at retail, making a profit on the markup.

Comparative Income Statement

A financial statement showing the revenues, expenses, and net income of a company over multiple periods, facilitating analysis of financial performance over time.

Depreciation

The systematic allocation of the depreciable amount of an asset over its useful life.

Production Equipment

The machinery and tools used in the manufacturing process to produce finished goods.