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A Publishing Company Performs Sample Surveys to Obtain Information on Characteristics

question 56

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A publishing company performs sample surveys to obtain information on characteristics of book readers.A book reader is defined to be one who read one or more books in the six months prior to the survey; a non-book reader is defined to be one who read newspapers or magazines but no books in the six months prior to the survey; a nonreader is defined to be one who did not read a book,newspaper,or magazine in the six months prior to the survey.The following data were obtained from a random sample of 1429 persons 16 years old and over in an effort to determine whether or not the proportions of book readers,non-book readers,and non-readers are the same for each income bracket.  Classification \quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\text { Classification }
 Book  reader  Non-book  reader  Non-  reader  Total  Less than $15,00017326755495$15,000 to $24,99916813019317$25,000 to $39,9991601449313$40,000 and  over 213883304 Total 714629861429\begin{array}{|l|c|c|c|c|}\hline&\begin{array}{c}\text { Book } \\\text { reader }\end{array} & \begin{array}{c}\text { Non-book } \\\text { reader }\end{array} & \begin{array}{c}\text { Non- } \\\text { reader }\end{array} & \text { Total }\\\hline\begin{array}{l}\text { Less than } \\\$ 15,000\end{array} & 173 & 267 & 55 & 495 \\\hline\begin{array}{l}\$ 15,000 \text { to } \\\$ 24,999\end{array} & 168 & 130 & 19 & 317 \\\hline\begin{array}{l}\$ 25,000 \text { to } \\\$ 39,999\end{array} & 160 & 144 & 9 & 313 \\\hline \begin{array}{l}\$ 40,000 \text { and } \\\text { over }\end{array} & 213 & 88 & 3 & 304 \\\hline \text { Total } & 714 & 629 & 86 & 1429 \\\hline\end{array}
Household
Income


Definitions:

GAAP

Generally Accepted Accounting Principles, which are standardized guidelines for accounting practices.

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Business activities that relate directly to the production, sale, and delivery of a company's products or services.

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Transactions and events related to raising capital, repaying investors, issuing dividends, and loans that affect a company's capital structure and equity.

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The difference between a company's total cash inflows and outflows in a given period.

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