A Market Researcher Believes That Industry Type Is Independent of the Operating

question 40

Multiple Choice

A market researcher believes that industry type is independent of the operating margin.He compiles a table with seven industry classifications and classifies operating margin into five levels.When applying a chi-square test of independence to this table, the number of degrees of freedom is _____.

• A)24
• B)35
• C)12
• D)10
• E)11

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Definitions:

Concealment

The act of hiding or not disclosing important information intentionally.

Insurable Interest

A principle that requires an individual to have a legitimate financial or emotional stake in the preservation of the subject of insurance to obtain a policy.

Insurance Policy

A contract issued by an insurer to an insured, detailing the terms under which the insurer agrees to financially protect the insured against specific risks in exchange for premiums.

Indemnified

Protected against liability, loss, or damage, typically through a legal agreement where one party agrees to compensate another for any financial harm that arises.