Suppose Bank of America Would Like to Investigate If the Credit

question 76

Multiple Choice

Suppose Bank of America would like to investigate if the credit score and income level of an individual are independent of one another. Bank of America selected a random sample of 400 adults and asked them to report their credit score range and their income range. The following contingency table presents these results. Based on the critical value approach and using α = 0.01, which of the following the decision and conclusion for this hypothesis test would be?

• A) Reject the null hypothesis, we cannot conclude that credit score and income are independent of one another.
• B) Do not reject the null hypothesis, we can conclude that credit score and income are independent of one another.
• C) Do not reject the null hypothesis, we cannot conclude that credit score and income are not independent of one another.
• D) Reject the null hypothesis, we can conclude that credit score and income are independent of one another.

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Definitions:

Ending Inventory

The final value or amount of goods available for sale by a company at the end of an accounting period.

Equivalent Units

A concept in cost accounting used to allocate costs to partially completed goods, adjusting for the amount of work done.

Job Order Cost System

An accounting system that accumulates costs for each specific job or project, making it possible to determine the profitability of each.

Production Period

The timeframe during which goods are manufactured or produced, from the start of production to its completion.