Preferences for the Type of Diet Drink from a Random

question 45

Multiple Choice

Preferences for the type of diet drink from a random sample of 121 shoppers are in the table below. A researcher is interested in determining if there is a relationship between the type of diet drink preferred and the age of the shoppers. $$\begin{array} { l l | r | r | r } & & \text { Under } 25 & 25 \text { and Older } & \text { Total } \\\hline \text { Diet Pepsi } & \text { Observed } & 10 & 60 & 70 \\& \text { Expected } & 21.40 & 48.60 & 70.00 \\& \% \text { of chisq } & 28.6 \% & 12.6 \% & 41.3 \% \\\hline \text { Diet Coke } & \text { Observed } & 18 & 14 & 32 \\& \text { Expected } & 9.79 & 22.21 & 32.00 \\& \% \text { of chisq } & 32.5 \% & 14.3 \% & 46.8 \% \\\hline \text { Diet Sprite } & \text { Observed } & 9 & 10 & 19 \\& \text { Expected } & 5.81 & 13.19 & 19.00 \\& \text { \% of chisq } & 8.3 \% & 3.6 \% & 11.9 \% \\\hline \text { Total } & \text { Observed } & 37 & 84 & 121 \\& \text { Expected } & 37.00 & 84.00 & 121.00 \\& \% \text { of chisq } & 69.4 \% & 30.6 \% & 100.0 \% \\& & & &\end{array}$$ Using ? = .025, what is the critical value of the test statistic that you would use in a decision rule to test an appropriate hypothesis?

• A)5.02
• B)5.99
• C)7.38
• D)14.45

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Definitions:

Accrued/Prepaid Pension Cost

This refers to the accounting treatment of pension expenses that have been incurred but not yet paid (accrued) or paid in advance (prepaid).

Projected Benefit Obligation

An actuarial calculation of the present value of pension benefits owed to employees, measured by the projected salary levels.

Interest Cost

The expense associated with borrowing funds, calculated as the rate of interest times the principal amount of the debt.