A Chi-Squared Test of a Contingency Table Is Applied to a Contingency

question 157

True/False

A chi-squared test of a contingency table is applied to a contingency table with 4 rows and 4 columns for two qualitative variables.The degrees of freedom for this test must be 9.

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Definitions:

Direct Labor Efficiency Variance

The difference between the budgeted amount of direct labor required to produce an output and the actual direct labor used.

Favorable

A term used in budgeting and finance to indicate results that are better than expected, such as lower costs or higher revenues.

Unfavorable

A term used to describe outcomes or variances that negatively impact financial performance or expectations.

Unfavorable Variances

Occurrences when actual costs exceed budgeted or expected costs, indicating a potential need for management action to address inefficiencies.