A Group of 2000 Individuals from 3 Different Cities Were $\alpha$

question 55

Essay

A group of 2000 individuals from 3 different cities were asked whether they owned a foreign or a domestic car.The following contingency table shows the results of the survey.

At $\alpha$ = 0.05 using the p-value approach,test to determine if the type of car purchased is independent of the city in which the purchasers live.

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Definitions:

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, used in statistics to quantify the variability or spread of a data set.

SML

The Security Market Line (SML) is a graphical representation of the Capital Asset Pricing Model (CAPM), showing the relationship between the expected return of investments and their risk as measured by beta.

Stable Equilibrium

A condition in which a system tends to return to its original state after a disturbance, indicating stability and balance.

Probabilities Of Loss

Probabilities of loss indicate the likelihood or risk of an investment resulting in a financial loss rather than a gain or profit.