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When looking at energy consumption, we are often interested in detecting trends over time and how they correlate among different countries. The information in Table 11.57 shows the average energy use (in units of kg of oil equivalent per capita) in the USA and the joint European Union countries (EU) for the six-year period 2005 to 2010. DoW? Perform the analysis at the 5% significance level.

Short Answer

Expert verified

There is sufficient evidence to insure that the distribution of energy uses values are same.

Step by step solution

01

Given Information

We have to test the energy use values in these two areas come from the same distribution

02

Null Hypothesis

The null hypothesis is shown below:H0: : The distribution of energy uses values are the same.

03

Step 3:Alternative Hypothesis

Against the alternative hypothesis as given below:

Ha:The distribution of energy uses values are different.

04

Degrees of Freedom

Degrees of freedom can be calculated by the formula given below

df=(numberofcolumns-1)

=2-1

=1

05

Distribution 

From above calculation, it is clear that the distribution for the test is χ12.

06

Expected Frequencies

The observed value table is already given in the textbook. Calculate the expected frequencies by using the formula shown below:

E=(row total)(column total)overall total

All calculations can be done in excel worksheet. Hence, the expected $(E)$ values table is shown below:

07

Test Statistic

The test statistic of independence test is given below:

Test statistic=∑(i×f)(O-E)2E

To calculate (O-E)2Eapply formula =(B4-B16)2/B16jin cell B27 and drag the same formula up to cell C32. After that, take total of columns total and rows total. The table of test statistic is shown below:

The test statistic is 2.74

08

p- Value

The p-value can be calculated in excel by using CHIDIST ( ) formula as shown below:

the p- value is 0.098

09

The Chi-square sketch

The Chi-square sketch is given below

T

10

Decision, reason and conclusion

i. Alpha:0.05

ii: Decision: Do not reject the null hypothesisH0

iii. Reason for decision: Because p-value >α

iv. Conclusion: There is sufficient evidence to insure that the distribution of energy uses values are same.

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