A Chi-Square Test for Independence Is Being Used to Evaluate

question 61

Multiple Choice

A chi-square test for independence is being used to evaluate the relationship between two variables.If the test has df = 2,what can you conclude about the two variables?

• A)One variable consists of 2 categories and the other consists of 3 categories.
• B)One variable consists of 2 categories and the other consists of 4 categories.
• C)Both variables consist of 2 categories.
• D)Both variables consist of 3 categories.

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Definitions:

Competitive Industry

An industry characterized by many firms producing similar goods or services, where no single firm has a dominant market share.

Market Price

The existing rate at which an asset or service is available for buying or selling in the market.

Demand Curve

A visual diagram showing the correlation between an item's price and the amount of it that consumers want to buy.

Profit Maximized

Profit maximized refers to a scenario where a firm achieves the highest possible profit from its operations, where marginal costs equal marginal revenue.