I Chi-Square Test Statistic Used in a Goodness-Of-fiT Test Has

question 97

Multiple Choice

i. chi-square test statistic used in a goodness-of-fit test has k - 2 degrees of freedom.
ii. A goodness-of-fit test is a nonparametric test involving a set of observed frequencies and a
Corresponding set of expected frequencies.
iii. For a goodness-of-fit test, the following are possible null and alternate hypotheses.
Null: Sales are uniformly distributed among the five locations.
Alternate: Sales are not uniformly distributed among the five locations.

• 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:

Systematic Risk

The risk inherent to the entire market or a segment thereof, also known as market risk, which cannot be eliminated through diversification.

Stock Market

A public market for buying, selling, and trading stocks (shares) of publicly-held companies.

Alpha

A measure of the excess return of an investment relative to the return of a benchmark index.

Actual Return

The real gain or loss experienced on an investment, typically expressed as a percentage of the investment's initial cost.