The Chi-Square Statistic Allows Us to Determine Whether the Difference

question 39

Multiple Choice

The Chi-square statistic allows us to determine whether the difference between the observed frequency distribution and the expected frequency distribution should be attributed to:

• A) sampling variation.
• B) population variation.
• C) random variation.
• D) systematic variation.

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Definitions:

Unfavorable

A term used to describe outcomes or variances that negatively impact a business financially or operationally.

Direct Materials Quantity Variance

The difference between the actual quantity of materials used in production and the standardized expected quantity, valued at the standard cost per unit.

Direct Materials

Raw materials that are directly traceable to the production of a specific product and are significant in cost.

Favorable

A term usually used in finance and accounting to describe results that are better than anticipated or that result in a benefit.