Which of the Following Is Not an Assumption of the χ²

question 21

Multiple Choice

Which of the following is not an assumption of the χ² test of independence?

• A)It is a nonparametric test.
• B)It is appropriate only for ordinal data.
• C)The frequency in each cell should be at least 5.
• D)The sample should be randomly selected.

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Definitions:

Net Present Value

A financial metric that calculates the difference between the present value of cash inflows and outflows over a period of time.

Interest Rate

The proportion of a loan charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.

Break Even

Break even refers to the point at which total revenues equal total costs, meaning that a business or project is neither losing nor making money.

Fixed Costs

Fixed costs are business expenses that remain constant regardless of the level of production or business activity.