A Variable Contains Five Categories $\alpha$ = 01, the Appropriate Decision Is _______

question 42

Multiple Choice

A variable contains five categories.It is expected that data are uniformly distributed across these five categories.To test this, a sample of observed data is gathered on this variable resulting in frequencies of 27, 30, 29, 21, and 24.Using $\alpha$ = .01, the appropriate decision is _______.

• A)reject the null hypothesis that the observed distribution is uniform
• B)reject the null hypothesis that the observed distribution is not uniform
• C)do not reject the null hypothesis that the observed distribution is uniform
• D)do not reject the null hypothesis that the observed distribution is not uniform
• E)do nothing

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Definitions:

Sales Decline

A decrease in the volume or value of sales over a specific period.

Margin of Safety

The extent by which sales can fall before reaching the break-even point.

Break-even Sales

The amount of revenue required to cover all fixed and variable expenses associated with producing and selling a product.

Dollars

A unit of currency used in various countries, including the United States, associated with financial transactions, savings, and debts.