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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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Most popular questions from this chapter

The Insurance Institute for Highway Safety collects safety information about all types of cars every year, and publishes a report of Top Safety Picks among all cars, makes, and models. Table 11.58 presents the number of Top Safety Picks in six-car categories for the two years 2009 and 2013. Analyze the table data to conclude whether the distribution of cars that earned the Top Safety Picks safety award has remained the same between 2009 and 2013. Derive your results at the 5%

significance level.

Use a solution sheet to solve the hypothesis test problem. Go to Appendix E for the chi-square solution sheet. Round expected frequency to two decimal places.

A manager of a sports club keeps information concerning the main sport in which members participate and their ages. To test whether there is a relationship between the age of a member and his or her choice of sport, 643members of the sports club are randomly selected. Conduct a test of independence.

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racquetball42583046
tennis58763865
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Suppose that 600thirty-year-olds were surveyed to determine whether or not there is a relationship between the level of education an individual has and salary. Conduct a test of independence

AnnualSalaryNot a high schoolgraduateHigh schoolgraduateCollegegraduateMasters ordoctorate<\(30,0001525105\)30,000-\(40,00020407030\)40,000-\(50,00010204055\)50,000-\(60,0005102060\)60,000+0510150

In 2007, the United States had 1.5 million homeschooled students, according to the U.S. National Center for Education Statistics. In Table 11.56 you can see that parents decide to homeschool their children for different reasons, and some reasons are ranked by parents as more important than others. According to the survey results shown in the table, is the distribution of applicable reasons the same as the distribution of the most important reason? Provide your assessment at the

5% significance level. Did you expect the result you obtained?

Read the statement and decide whether it is true or false.

The test to use when determining if the college or university a student chooses to attend is related to his or her socioeconomic status is a test for independence.

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