Suppose that a random sample of firms with impaired assets was classified according to whether discretionary write-downs of these assets were taken, and also according to whether there was evidence of...


Suppose that a random sample of firms with impaired assets was classified according to whether discretionary write-downs of these assets were taken, and also according to whether there was evidence of subsequent merger or acquisition activity. Using the data in the accompanying table, test the null hypothesis of no association between these characteristics.

























Write-Down



Merger or Acquisition Activity?





Yes



No



Yes



32



48



No



25



57





May 26, 2022
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