Anita Cruz Recently Assumed Responsibility for a Large Investment Portfolio $\alpha$

question 73

Multiple Choice

Anita Cruz recently assumed responsibility for a large investment portfolio.She wonders whether industry sector influences investment objective.Her staff prepared the following contingency table from a random sample of 200 common stocks.
Using $\alpha$ = .01,appropriate decision is ______________.

• A)reject the null hypothesis and conclude the two variables are not independent
• B)reject the null hypothesis and conclude the two variables are independent
• C)do not reject the null hypothesis and conclude the two variables are not independent
• D)do not reject the null hypothesis and conclude the two variables are independent
• E)do nothing

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Definitions:

Prevention Cost

The cost incurred to prevent defects in products or services, including costs related to quality planning and assurance.

Quality Cost Report

A financial report that quantifies the total cost of quality-related activities, including prevention, appraisal, and failure costs.

Quality Improvement

The process of making changes to operations to increase the efficiency and effectiveness of products, services, and processes.

External Failure Cost

Costs incurred when a product fails to meet quality standards after it is delivered to the customer, including returns, repairs, and warranty claims.