I in the Goodness-Of-fiT Test, the Chi-Square Distribution Is Used

question 126

Multiple Choice

i. In the goodness-of-fit test, the chi-square distribution is used to determine how well an observed
Set of observations "fits" an "expected" set of observations.
ii. The sum of the expected frequencies and the sum of the observed frequencies must be equal.
iii. If the computed value of chi-square is less than the critical value, reject the null hypothesis at a
Predetermined level of significance.

• A) (i), (ii), and (iii) are all correct statements.
• B) (i) and (ii) are correct statements but not (iii).
• C) (i) and (iii) are correct statements but not (ii).
• D) (ii) and (iii) are correct statements but not (i).
• E) (i), (ii), and (iii) are all false statements.

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Definitions:

Overstock Quantity

Excess inventory that exceeds the demand, often resulting in decreased cash flow, increased storage costs, and potential waste.

Optimal Quantity

Optimal quantity is the most efficient amount of goods or resources needed to minimize costs and maximize value or profitability.

Wholesale Price

Wholesale Price is the cost of goods sold in large quantities for the purpose of resale by retailers, often lower than the retail price to allow for margins.

Retailer

A business or person that sells goods directly to consumers.