A Chi-Square Test for Independence Is Applied to a Contingency

question 38

True/False

A chi-square test for independence is applied to a contingency table with three rows and four columns for two qualitative variables. The degrees of freedom for this test must be 12.

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Definitions:

Economies of Scale

The cost advantage that arises with increased output of a product, as the fixed costs are spread over more units of production.

Adam Smith

An 18th-century Scottish economist and philosopher, best known for his theories of the free market and the "invisible hand" guiding economies.

Diseconomies of Scale

Diseconomies of scale occur when a firm's costs per unit increase as it produces more units, due to inefficiencies.

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output decreasing with increasing scale.