Exhibit 4-5

question 3

Essay

Exhibit 4-5.The following contingency table provides frequencies for the preferred type of exercise for people under the age of 35 and those 35 years of age or older.Here xx and yy represent missing values. Refer to Exhibit 4-5.Determine whether selecting an under 35 individual is independent of selecting an individual who prefers swimming.

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Definitions:

More Elastic

Describes a scenario where the quantity demanded or supplied of a good or service is more responsive to changes in its price.

Income Elasticity

A measure used in economics to show how the demand for a good or service changes in response to changes in consumer income.

Elapses

Refers to the passage of time or the process of something coming to an end or expiring.

Inelastic Demand

Describes a situation where the demand for a good or service changes little when its price changes.