Jason and Lucy Prepared a Household Budget in an Attempt

question 15

Multiple Choice

Jason and Lucy prepared a household budget in an attempt to manage their money better. They prepared the following list: Monthly income (after taxes) = $4,500; Monthly expenses (necessities) , which include rent, $550; auto loan, $250; student loan, $200; savings, $500; food, $200 = $1,700; Amount left over = $2,800 (income less necessary expenses) . The $2,800 they had left over is their

• A)gross income.
• B)personal income.
• C)disposable income.
• D)discretionary income.
• E)profit.

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Definitions:

Chi-squared Goodness-of-fit Test

A statistical test used to determine if observed data fits an expected distribution.

Expected Frequencies

The anticipated count of occurrences across different categories or intervals, based on a probability model.

Observed Frequencies

The actual number of occurrences or instances recorded in categorized data.

Null Hypothesis

A statement in statistics that there is no significant difference or effect, and any observed difference is due to chance.