In a Consumer Survey Designed to Assess the Priorities of Online

question 103

Multiple Choice

In a consumer survey designed to assess the priorities of online shoppers, 2000 online shoppers were randomly selected and asked to identify what is most important to them when buying a product online.Respondents to the survey were classified by online shopping frequency as either "frequent online shoppers" or "occasional online shoppers." Results of the study are used to fill in a table like the one below.Based on the results, you use chi-square analysis to test the null hypothesis that shopper priority is independent of online shopping frequency. Suppose the chi-square statistic for the test turns out to be 6.172.If the significance level is set at 5%, what should you conclude?

• A)The two factors are related.
• B)Priority and shopping frequency are not independent factors.
• C)Can't reject the "independence" null hypothesis.
• D)Reject the "independence" null hypothesis.

Apply time value of money concepts to real-world financial decisions.

Interpret financial terms and calculations related to annuities and perpetuities.

Apply analytical skills to assess financial options, including loans and investments.

Understand the concept and importance of reordering points in inventory management.

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Definitions:

Random Variable

A variable that takes on a range of values determined by a random phenomenon, and it's described by its probability distribution.

Probability Density

A mathematical function that specifies the likelihood of a continuous variable taking on a particular value, critical in the context of continuous probability distributions.

Uniform Distribution

A type of probability distribution where all outcomes are equally likely to occur within a certain range.

Continuous Uniform

A distribution that assigns an equal probability to all outcomes in a continuous range.