Instruction 15-11
Recent Studies Have Found That Australian Children Are

question 23

Multiple Choice

Instruction 15-11
Recent studies have found that Australian children are more obese than in the past.The amount of time children spent watching television has received much of the blame.A survey of 100 ten-year-olds revealed the following with regards to weights and average number of hours a day spent watching television.You are interested in testing whether the average number of hours spent watching TV and weights are independent at 1% level of significance.
| TV Hours |
$$\begin{array} { | l | c | c | c | c | } \hline \text { Weights } & 0 - 3 & 3 - 6 & 6 + & \text { Total } \\\hline \text { More than } 10 \text { kg overweight } & 1 & 9 & 20 & 30 \\\hline \text { Within } 10 \mathrm {~kg} \text { of normal weight } & 20 & 15 & 15 & 50 \\\hline \text { More than } 10 \mathrm {~kg} \text { underweight } & 10 & 5 & 5 & 20 \\\hline \text { Total } & 31 & 29 & 40 & 100 \\\hline\end{array}$$
-Referring to Instruction 15-11,if there is no connection between weights and mean number of hours spent watching TV,how many children should you expect to be spending 3-6 hours on average watching TV and are more than 10 kg underweight?

• A)6.2
• B)8
• C)5
• D)5.8

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Definitions:

Sensitivity

The quality of being easily affected by outside forces or influences, often used in discussing market sensitivity to price changes or consumer sensitivity to environmental issues.

Price Elasticity

An economic concept that describes the degree to which the demand for a product or service varies with its price.

Survival Pricing

A pricing objective that involves lowering prices to the point at which revenue just covers costs, allowing the firm to endure during a difficult time.

Break-Even Point

The point at which total revenue equals total costs, resulting in no net loss or gain for the business.