In a Goodness-Of-Fit Test, the Null Hypothesis (No Difference Between

question 18

Multiple Choice

In a goodness-of-fit test, the null hypothesis (no difference between sets of observed and expected frequencies) is rejected when the ________________.

• A) Computed chi-square is less than the critical value
• B) Difference between the observed and expected frequencies is significantly large
• C) Difference between the observed and expected frequencies is small
• D) Difference between the observed and expected frequencies occurs by chance

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Definitions:

Disposable Income

Budget available for households to direct towards saving and spending post-income tax assessment.

Disposable Income

Income available to an individual or household after accounting for taxes and other mandatory charges, available for spending or saving.

Saving

Saving refers to the portion of income not spent on current expenses and set aside for future use, often placed in accounts or investments that can accumulate interest over time.

Induced Consumption

The portion of consumption that changes as a result of changes in income, with higher incomes leading to increased consumption.