Anita Cruz Recently Assumed Responsibility for a Large Investment Portfolio $\alpha$

question 20

Multiple Choice

Anita Cruz recently assumed responsibility for a large investment portfolio. She wonders whether industry sector influences investment objective. Her staff prepared the following contingency table from a random sample of 200 common stocks: Using $\alpha$ =.05, critical chi-square value is ___.

• A) 9.21
• B) 7.88
• C) 15.09
• D) 5.99
• E) 7.89

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Definitions:

Clayton Act Section 3

Part of U.S. antitrust law that prohibits exclusive dealings and tying arrangements where they may substantially lessen competition or tend to create a monopoly.

Tying Agreement

A commercial arrangement whereby the seller conditions the sale of one product on the buyer's agreement to purchase another, separate product.

Smith-Lever Act

A 1914 United States legislation that established a system of cooperative extension services, connected to the land-grant university system, to disseminate information about agriculture, home economics, public policy/government, leadership, 4-H, economic development, and many other related subjects.

Monopoly Power

The ability of a company or entity to control the market for a particular good or service, enabling them to set prices or terms of sale without competition.