At a Recent Car Show, a Sample of 125 People

question 36

Multiple Choice

At a recent car show, a sample of 125 people produced the following results. Use the 0.05 significance level to determine if there is a relationship between age and model preferred.

• A) Reject the null hypothesis, there is a significant relationship between age and model preferred at the 5% level of significance.
• B) Unable to reject the null hypothesis, there is a significant relationship between age and model preferred at the 5% level of significance.
• C) Reject the null hypothesis, there is insufficient evidence to show a significant relationship between age and model preference.
• D) Unable to reject the null hypothesis, there is significant relationship between age and model preferred at the 5% level of significance.

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Definitions:

Demand Function

An equation that describes the quantitative relationship between the demand for a good and various factors affecting it, such as price, income, and price of related goods.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, reflecting the sensitivity of consumers to price changes.

Normal Goods

Normal goods are goods whose demand increases when consumer income rises, and decreases when consumer income falls, opposite to inferior goods.

Perfect Substitutes

Goods that can completely replace each other in consumption, resulting in consumers being indifferent to which product they consume.