The Use of the Chi-Square Statistic Would Be Permissible in the Following

question 16

True/False

The use of the chi-square statistic would be permissible in the following goodness-of-fit test.

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Definitions:

Flexible Budget

A budget that is stated as a function of some volume measure, such as units produced. Flexible budgets adjust for changes in volume.

Master Budget

A document that integrates all the estimates from the different departments to establish guidelines and benchmarks for the whole organization.

Favorable Variance

A financial term indicating that actual spending was less than budgeted amounts, or revenue was higher than expected.