Determine if the following statement is true or false. If you believe that the statement is false,
Question:
Determine if the following statement is true or false. If you believe that the statement is false, briefly explain why you think it is false. The chi-squared test of independence only detects linear association between variables in a contingency table.
Choose the correct answer below:
(a) The statement is true
(b) The statement is false because the test detects any dependence between the variables, not linear associations.
(c) The statement is false because the test determines if two proportions are equal, not if there is a linear association between the variables.
(d) The statement is false because the test also detects any nonlinear associations between the variables.
Fundamentals of Financial Management
ISBN: 978-0324664553
Concise 6th Edition
Authors: Eugene F. Brigham, Joel F. Houston