What Happens to the Critical Value for a Chi-Square Test

question 13

Multiple Choice

What happens to the critical value for a chi-square test if the number of categories is increased?

• A)The critical value increases.
• B)The critical value decreases.
• C)The critical value depends on the sample size, not the number of categories.
• D)The critical value is determined entirely by the alpha level.

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Definitions:

Liquidity

How effortlessly an asset can be turned into cash without altering its market price.

Periodic Inventory System

An inventory accounting system where the inventory level is updated and the cost of goods sold is calculated at the end of a period, rather than after each sale.

Purchases Account

An account used in accounting to record the total cost of goods bought for resale during an accounting period.

Freight In

The cost of transporting goods into a business, usually included in the cost of inventory.