Vending Machines on a College Campus Offer a Variety of Snacks

question 52

Multiple Choice

Vending machines on a college campus offer a variety of snacks. The purchasing agent believes that each type of snack is equally preferred by students and consequently
Orders equal quantities. The number of snacks sold from vending machines on this
Campus for the last six months is shown in the following table. The correct value of the
Test statistic for determining if the purchasing agent's belief if supported is $$\begin{array} { | c | c | c | c | c | } \hline \text { Snack Type } & \text { Chips } & \text { Candy Bars } & \text { Crackers } & \text { Nuts } \\\hline \text { Purchase Frequency } & 159 & 198 & 174 & 149 \\\hline\end{array}$$

• A) χ 2 = 8.012
• B) χ 2 = 12.019
• C) χ 2 = 0.984
• D) χ 2 = 45.014
• E) None of the above.

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Definitions:

Future Value

The value of an investment or cash flow at a specific future date, adjusted for time value of money and interest.

Discount Rate

The interest rate used to discount future cash flows to their present value, often reflecting the cost of capital or the risk of the investment.

Present Value

The present evaluation of a future cash sum or series of cash receipts, factoring in a certain rate of return for discounting.