A Researcher Tests Whether Levels of Education and Income Levels

question 21

Multiple Choice

A researcher tests whether levels of education and income levels are related.In this study,he observes the following frequencies.If he computes a chi-square test for independence at a .05 level of significance,then what is the decision for this test?

• A) Education and income level are related.
• B) Education and income level are not related.
• C) Education and income level are independent.
• D) Education and income level are not related and education and income level are independent.

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Definitions:

Investment Required

The total amount of capital needed to undertake a specific project, purchase, or investment.

Project Profitability Index

A calculation used to determine the relative profitability of a project by dividing the present value of future cash flows by the initial investment cost.

Salvage Recovered

The amount of money or value received from selling off the remains of assets after their useful life is over or after a casualty loss.

Discount Rate

Used to calculate the present value of future cash flows, reflecting the opportunity cost of capital investment.