The Number of Degrees of Freedom for a Contingency Table

question 168

Multiple Choice

The number of degrees of freedom for a contingency table with 4 rows and 8 columns is

• A)32
• B)12
• C)21
• D)10

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Definitions:

Purchasing Power Risk

The risk that the value of money will decrease over time due to inflation, affecting the real value of investments and savings.

Investment Principal

A sum of money invested initially in a financial instrument or vehicle, which serves as the base on which returns or interest is calculated.

Passive Asset Allocation

An investment strategy that aims to build a portfolio mimicking a market index's composition, requiring minimal buying and selling.

Proportions

The quantitative relationship between two amounts, showing the number of times one value contains or is contained within the other.