In the Definitional Formula $x^{2}=\sum_{i=1}^{k} \frac{\left(f_{0}-f_{e}\right)^{2}}{f_{e}}$ , and the Computational Formula $x^{2}=\sum_{i=1}^{k} \frac{\left(f_{o}^{2}\right)}{f_{e}}-n$

question 7

Multiple Choice

In the definitional formula, $x^{2}=\sum_{i=1}^{k} \frac{\left(f_{0}-f_{e}\right) ^{2}}{f_{e}}$ , and the computational formula, $x^{2}=\sum_{i=1}^{k} \frac{\left(f_{o}^{2}\right) }{f_{e}}-n$ , squaring the numerator ensures that ______.

• A) a Chi-square statistic is never zero
• B) a Chi-square statistic is never less than zero
• C) only severely variables that are dependent on each other will be negative
• D) it is easier to reject the null hypothesis because exponentiating a value increases its size

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Definitions:

Budgeted Balance Sheet

A prediction of a company’s financial position at the end of a specified period, incorporating anticipated assets, liabilities, and equity based on the budget.

Cash Budget

A financial plan that estimates cash inflows and outflows over a specific period to manage liquidity and ensure adequate cash flow.