Instruction 15-7
According to an Article in Marketing News, Fewer

question 14

Short Answer

Instruction 15-7
According to an article in Marketing News, fewer cheques are being written at grocery store checkout stands than in the past. To determine whether there is a difference in the proportion of shoppers who pay by cheque among three consecutive years at a 0.05 level of significance, the results of a survey of 500 shoppers in three consecutive years are obtained and presented below.
$$\begin{array} { | l | c | c | c | } \hline \text { Cheque Written } & \text { Year 1 } & \text { Year 2 } & \text { Year 3 } \\\hline \text { Yes } & 225 & 175 & 125 \\\hline \text { No } & 275 & 175 & 125 \\\hline\end{array}$$
-Referring to Instruction 15-7,what are the degrees of freedom of the test statistic?

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Definitions:

Variable To Fixed Costs

The process of converting costs that vary with production volumes into costs that remain constant regardless of volume.

Direct Labor

Workers or employees who are directly involved in the production of goods or services, whose labor can be easily traced to the product.

Committed Fixed Costs

Long-term fixed costs that cannot be easily altered in the short term, such as leases, depreciation on equipment, and salaries of permanent employees.

Short Run

A period in which at least one factor of production is fixed, allowing limited adjustments to production or operational levels.