I the Sum of the Expected Frequencies and the Sum

question 4

Multiple Choice

i. The sum of the expected frequencies and the sum of the observed frequencies must be equal.
ii. If the computed value of chi-square is less than the critical value, reject the null hypothesis at a
Predetermined level of significance.
iii. If there are only two cells in a goodness-of-fit test, we should expect 5 or more frequencies.

• 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:

Gain

The financial benefit realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Deducted

Removed or taken away from a total amount or sum, often referring to expenses subtracted from income before taxation.

Net Income

The net profit for the company, arrived at after taking away all forms of expenses and taxes from the generated total revenue.

Net Cash Flow

This measures the amount of cash generated or used by a business in a given period, taking into account cash inflows and outflows.