A decision tree is a tree-shaped diagram that shows the alternatives, states of nature, probabilities, and payoffs for decision making under___________.
A) risk
B) certainty
C) uncertainty
D) probabilities
Question 2
Suppose Bank of America (B of
A) would like to investigate if credit score and income level of an individual are independent of one another. B of A selected a random sample of 400 adults and asked them to report their credit score range and their income range. The following contingency table presents these results.
Credit Score
Income Less than 650 650-750 More than 750
Less than 50,000 26 30 24
50,000 to less than 100,000 63 53 44
100,000 to less than 150,000 40 30 30
More than 150,000 21 17 22
Using = 0.01, the critical value for this hypothesis test is ________.
A) 9.488
B) 12.592
C) 13.277
D) 16.812
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