Jones Walked into a New Car Lot, Pointed to a Specific

question 132

Essay

Jones walked into a new car lot, pointed to a specific car, and said, "I'll take that one." Sam, the operator of the car lot, explained that there was a certain amount of pre-delivery preparation that had to take place before the car could be delivered, and that it would be ready for the purchaser two days later. It was agreed that the purchase price would be paid at that time. Explain who bears the risk in the meantime.

---

Definitions:

Alpha

The threshold value used in hypothesis testing that determines the critical region for rejecting the null hypothesis.

Cramér's V

A measure of association between two nominal or categorical variables, providing an index value between 0 and 1.

Null Hypothesis

A hypothesis that assumes no significant difference or effect exists between certain datasets or variables.

Level of Significance

The threshold chosen by the researcher below which a p-value indicates that the observed result is statistically unlikely to have occurred by chance.