Michelle Steward Is a Marketing Professor at Wake Forest University

question 82

Multiple Choice

Michelle Steward is a marketing professor at Wake Forest University.Michelle had been asked by the administration to study a sample of classes at Wake to help the university understand the student population better,particularly in terms of factors that differentiate students with high versus low GPAs.One of the questions asked was: "Did you pass or fail the last test you took?" and another question in the study asked "Did you study or not study for the last test you took?" Michelle decided to run a cross-tabulation analysis on these two questions.When she did she also ran the chi-square test.The result was a Pearson Chi-Square Value of 8.64 and a p value reported as a "Sig." in SPSS of .03.Michelle knew that this meant:

• A)there was a significant,positive association between the two variables
• B)there was the presence of an association;the probability of supporting the null hypothesis that there is no association is only 3 percent
• C)there was the presence of a negative association;the probability of supporting the null hypothesis that there is no association is only 3 percent
• D)there was the presence of a positive,"very strong" association because the probability of supporting the null hypothesis that there is no association is only .03 percent
• E)None of the above;Michelle should not have run a chi-square test because the two variables are both metric.

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Definitions:

Yield Curve

A graph that shows the relationship between interest rates and the time to maturity of debt for a given borrower in a given currency.

Perpetuity

A type of annuity that pays an infinite series of cash flows with no end, often used as a model for valuing stocks.

Interest Rates

The price, expressed as a percentage of the principal, that a lender demands from a borrower for the borrowing of assets.

Frederick Macaulay

An economist known for pioneering the concept of bond duration, which measures the sensitivity of a bond's price to changes in interest rates.