A Proofreader Checked 160 Ads for Grammatical Errors Using a Goodness-Of-Fit Test to Determine Whether This Distribution Is

question 56

Multiple Choice

A proofreader checked 160 ads for grammatical errors. The sample frequency distribution is shown: $$\begin{array} { | l | c | c | c | c | } \hline \text { Number of Errors } & 0 & 1 & 2 & 3 \\\hline \text { Observed Frequency } & 10 & 65 & 71 & 14 \\\hline\end{array}$$ Using a goodness-of-fit test to determine whether this distribution is uniform would result in a chi-square test statistic of approximately:

• A)55.
• B)79.
• C)85.
• D) 161.

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Definitions:

Capital Rationing

The process by which management plans, evaluates, and controls long-term capital investments involving fixed assets.

Investment Funds

Pooled funds from investors that are managed by professionals and invested in a diversified portfolio of assets to earn returns.

Capital Investment

Expenditure on assets that are expected to produce benefits over a long period, such as buildings, machinery, and equipment.

Internal Rate

Often referred to in the context of Internal Rate of Return (IRR), it represents the discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.