A Market Researcher Is Studying the Spending Habits of People

question 95

Multiple Choice

A market researcher is studying the spending habits of people across age groups. The amount of money spent by each individual is classified by spending category (Dining out, Shopping, or Electronics) and generation (Gen-X, Gen-Y, Gen-Z, or Baby Boomers) . The data and an incomplete ANOVA table are shown below. For the interaction, the value of the test statistic is ________.

• A) 34.20
• B) 16.43
• C) 3.21
• D) 24

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Definitions:

Adverse Selection

A situation in finance and insurance where parties with higher risk are more likely to engage in agreements, potentially leading to imbalances in the market.

Actuarial Error

Mistakes in the calculations or assumptions made by actuaries, which can affect insurance premiums, pension plans, and other financial assessments.

Consumption Smoothing

An economic concept that describes how individuals attempt to achieve a stable level of consumption over their lifetime, regardless of fluctuations in income.

Defined Benefit Pension

A type of pension plan where an employer promises a specified monthly benefit upon retirement, which is predetermined by a formula based on the employee's earnings history, tenure of service, and age.