SCENARIO 12-8 a Study Was Conducted to Determine Whether the Use of Use

question 7

Multiple Choice

SCENARIO 12-8
A study was conducted to determine whether the use of seat belts in motor vehicles depends on the educational status of the parents.A sample of 792 children treated for injuries sustained from motor vehicle accidents was obtained,and each child was classified according to (1) parents' educational status (College Degree or Non-College Degree) and (2) seat belt usage (worn or not worn) during the accident.The number of children in each category is given in the table below.

-Referring to Scenario 12-8,at 5% level of significance,there is sufficient evidence to conclude that

• A)use of seat belts in motor vehicles is related to the educational status of the parents.
• B)use of seat belts in motor vehicles depends on the educational status of the parents.
• C)use of seat belts in motor vehicles is associated with the educational status of the parents.
• D)All of the above.

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Definitions:

Fixed Overhead

Expenses that remain constant regardless of production or sales volume, including rent, salaries, and insurance premiums.

Direct Labour

The workforce directly involved in the manufacturing or production process.

Net Operating Income

Net operating income is the total profit of a business after subtracting operating expenses but before deducting taxes and interest charges.

Target Costing

A pricing method that involves reversing the traditional cost-plus formula to determine allowable costs based on market price and desired profit.