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What is the most important reason that students buy from catalogs? The answer may differ for different groups of students. Here are results for separate random samples of American and Asian students at a large midwestern university

(a) Should we use a chi-square test for homogeneity or a chi-square test of association/independence in this setting? Justify your answer. (b) State appropriate hypotheses for performing the type of test you chose in part (a). Minitab output from a chi-square test is shown below.

(c) Check that the conditions for carrying out the test are met.

(d) Interpret the P-value in context. What conclusion would you draw?

Short Answer

Expert verified

(a) The chi-square homogeneity test should be applied here.

(b) For the provided test, the proper null and alternative hypotheses may be stated as follows:

H0: There is no connection between the two variables.

HaA connection exists between two variables.

(c) Required conditions are fulfilled.

(d) there is adequate evidence to reject the assertion that the two variables are related at the5percent significance level.

Step by step solution

01

Part (a)Step 1: Given information

Given in the question that, Here are results for separate random samples of American and Asian students at a large midwestern university

We need to verify that should we use a chi-square test for homogeneity or a chi-square test of association/independence in this setting.

02

Part(a) Step 2: Explanation

Let's consider the output:

For the one qualitative variable of two samples, a two-way table was generated. As a result, the chi-square homogeneity test should be used.

03

Part(b) Step 1: Given information

Given in the question that, Here are results for separate random samples of American and Asian students at a large midwestern university.

We need to state appropriate hypotheses for performing the type of test chose in part (a)

04

Part (b) Step 2: Explanation

For the provided test, the proper null and alternative hypotheses may be stated as follows:

H0: There is no connection between the two variables.

Ha: A connection exists between two variables.

05

Part(c) Step 1: Given information

Given in the question that, Here are results for separate random samples of American and Asian students at a large midwestern university

We need to find that whether the conditions for carrying out the test are met.

06

Part(c) Step 2: Explanation

The following are the circumstances in this case:

1. A random sample is picked.

2. All of the projected counts are more than five.

3. The sample size is10%lower than the population.

As a result, the required conditions might be considered to be met.

07

Part(d) Step 1: Given information

Given in the question that, Here are results for separate random samples of American and Asian students at a large midwestern university

We need to interpret the P-value.

08

Part (d) Step 2: Explanation

If there is no association between the variables, the probability of having the same or extreme sample is 0.01percent.

0.05is the p-value. The null hypothesis is found to be false. Thus, there is adequate evidence to reject the assertion that the two variables are related at the5percent significance level.

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Most popular questions from this chapter

Market research Before bringing a new product to market, firms carry out extensive studies to learn how consumers react to the product and how best to advertise its advantages. Here are data from a study of a new laundry detergent. The participants are a random sample of people who don’t currently use the established brand that the new product will compete with. Give subjects free samples of both detergents. After they have tried both for a while, ask which they prefer. The answers may depend on other facts about how people do laundry.

(a) How are laundry practices (water hardness and wash temperature) related to the choice of detergent? Make an appropriate graph to display this relationship. Describe what you see.

(b) Determine whether or not the sample provides convincing evidence that laundry practices and product preference are independent in the population of interest

T11.5. We compute the value of theχ2statistic to be 6.58. Assuming that the conditions for inference are met, the P-value of our test is

(a) greater than 0.20

(b) between 0.10and 0.20.

(c) between 0.05and 0.10.

(d) between0.01 and 0.05

(e) less than 0.01

How do U.S. residents who travel overseas for leisure differ from those who travel for business? The following is the breakdown by occupation:

Explain why we can’t use a chi-square test to learn whether these two distributions differ significantly.

Let’s continue our analysis of Joey’s sample of M&M’S Peanut Chocolate Candies from the previous Check Your Understanding (page 681). Here is the brief intro of the question:

Candies are produced according to the following color distribution: 23% each of blue and orange, 15% each of green and yellow, and 12% each of red and brown. Joey bought a bag of Peanut Chocolate Candies and counted the colors of the candies in his sample: 12 blue, 7 orange, 13 green, 4 yellow, 8 red, and 2 brown.

1. Confirm that the expected counts are large enough to use a chi-square distribution. Which distribution (specify the degrees of freedom) should we use?

Many popular businesses are franchises—think of McDonald’s. The owner of local franchise benefits from brand recognition, national advertising, and detailed guidelines provided by the franchise chain. In return, he or she pays fees to the franchise firm and agrees to follow its policies. The relationship between the local owner and the franchise firm is spelled out in a detailed contract.

One clause that the contract may or may not contain is the entrepreneur’s right to an exclusive territory. This means that the new outlet will be the only representative of the franchise in a specified territory and will not have to compete with other outlets of the same chain. How does the presence of an exclusive-territory clause in the contract relate to the survival of the business?

A study designed to address this question collected data from a random sample of 170new franchise firms. Two categorical variables were measured for each franchisor. First, the franchisor was classified as successful or not based on whether or not it was still offering franchises as of a certain date. Second, the contract each franchisor offered to franchisees was classified according to whether or not there was an exclusive-territory clause. Here are the count data, arranged in a two-way table:

role="math" localid="1650453920307" Exclusive TerritorySuccessYesNoTotalYes10815123No341347Total14228170

Do these data provide convincing evidence of an association between an exclusive territory clause and business survival? Carry out an appropriate test at the α=0.01level.

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