Students in an Introductory College Economics Class Were Asked How

question 74

Multiple Choice

Students in an introductory college economics class were asked how many credits they had earned in college,and how certain they were about their choice of major.Their replies are summarized below. Which statement is most nearly correct?

• A)The contingency table violates Cochran's Rule.
• B)Visual inspection of column frequencies suggests independence.
• C)At α = .05 we would easily reject the null hypothesis of independence.
• D)At α = .05 we cannot reject he null hypothesis of independence.

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Definitions:

Contribution Margin

The difference between sales revenue and variable costs, used to cover fixed costs and contribute to profits.

Gross Margin

The financial metric representing the difference between revenue and the cost of goods sold, divided by revenue, often expressed as a percentage. It indicates how efficiently a company is using its resources to produce goods.

Contribution Margin

Contribution margin is the revenue remaining after deducting variable costs, used to cover fixed costs and profit.

Variable Cost

Costs that change in proportion to the level of goods or services that a business produces.