I a Goodness-Of-Fit Test Is a Nonparametric Test Involving a Set

question 30

Multiple Choice

i. A goodness-of-fit test is a nonparametric test involving a set of observed frequencies and a corresponding set of expected frequencies. ii. For a goodness-of-fit test, the following are possible null and alternate hypotheses: Null: Sales are uniformly distributed among the five locations. Alternate: Sales are not uniformly distributed among the five locations.
iii. In the goodness-of-fit test, the chi-square distribution is used to determine how well an observed set of observations "fits" an "expected" set of observations.

• A) (i), (ii), and (iii) are all correct statements.
• B) (i) and (ii) are correct statements but not (iii).
• C) (i) and (iii) are correct statements but not (ii).
• D) (ii) and (iii) are correct statements but not (i).
• E) (i), (ii), and (iii) are all false statements.

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Definitions:

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return.

Interest Rate

Rate at which one can borrow or lend money.

Decline

A decrease in quantity, quality, or strength over a period, often observed in economic indicators, stock prices, or physical capacities.

Interest Rate

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.