Professional Documents
Culture Documents
QUESTION 1
Where people turn to for news is different for various age groups. A study of
indicated where different age groups primarily get their news.
Column variable
105 85 71 261
Internet
Total 403 476 538 1417
Solution:
(a) H0: There is no relationship between the age group and where people primarily get
their news.
H1: There is a relationship between the age group and where people primarily get
their news.
Excel output
Observed Frequencies
Column variable
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105 85 71 261
Internet
Total 403 476 538 1417
Expected Frequencies
Column variable
Data
Number of Rows 5
Number of Columns 3
Degrees of Freedom 8
Results
p-Value 0.000145
Decision rule: If STAT
2
> 15.5073, reject H0.
Test statistic: STAT
2
= 30.9293
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Decision: Since STAT
2
= 30.9293 is greater than the critical bound of 15.5073, reject H0.
There is evidence of a significant relationship between the age group and where people
primarily get their news. The “50+” group has a lower than expected frequency of getting
their news through the Internet while the “under 36” group has a higher than expected
frequency of getting their news through the Internet.
QUESTION 2
Where people turn to for news is different for various age groups. Suppose that a
study conducted on this issue and it was based on 200 respondents who were
between the ages of 36 and 50 and 200 respondents who were above 50. The
results are represented in the following table with the specific breakdown of the
responses.
Age
Source of News 36-50 Above 50 Total
Newspapers 82 104 186
Other 118 96 214
Total 200 200 400
Solution: In this problem we have a 2x2 contingency table. Firstly we define the null and
alternative hypothesis.
a)
H 0 : 1 2 . (Proportion of 36-50 years old and the proportion of the group above
50, who get the news primarily for the newspaper is equal)
H 1 : 1 2 (the two proportions of people between the age 36 to 50 and above 50
who get their news primarily form newspapes are not the same. The way they get
their news is not independent of the age.)
In this type of problems we will use the chi square test statistic.
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( fo fe )2
Test Statictic df (r - 1)(c - 1) 2 where r is the number of rows in the
all cells fe
contigency table and c is the number of columns.
Alos f 0 : fo observed frequency in a particular cell
f e : expected frequency in a particular cell if H 0 is true
The average proportion is
X1 X 2 X 82 104
p 0.465 and
n1 n2 n 200 200
X1 X 2 X 118 96
p 0.535
n1 n2 n 200 200
The value for the chi square distribution for 1degrees of freedom at the 5% level of
significance is 3.841 .
2
0.05
Comparing the critical value with the value of the chi square test statistic we can see that
3.841 4.863 . Hence it follows that we will not accept the H 0 hypothesis. At the 5% level of
significance, the two proportions are not the same and there is a significant difference of the
proportion who get their news primarily from the newspaper between the ages 36 to 50 years
old and those above 50 years old.
b)
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Results
Critical Value 3.8415
Chi-Square Test Statistic 4.8638
p-Value 0.0274
Reject the null hypothesis
Based on the excel output we can see
that the p-values is 0.024. If we compare it with the significance level is smaller
0.024<0.05 hence we will reject the H 0
hypothesis mentioned in a).
QUESTION 3
More shoppers do their majority of their grocery shopping on Saturday than any
other day of the week. To check this statement 600 shoppers were interviewed, 200
from each age group: under 35, between 35-54 and over 54. The results are
represented in the following table
Observed Frequencies
Column variable
Row variable Under 35 35-54 Over 54 Total
Saturday 48 56 24 128
A Day other than Saturday 152 144 176 472
Total 200 200 200 600
Is there evidence of a significant difference among the age groups with respect to
the majority shopping day? Use the 5% level of significance.
Solution: In this problem we have a 3x2 contingency table. Firstly we define the null and
alternative hypothesis.
a)
H 0 : 1 2 3 .
In this type of problems we will use the chi square test statistic.
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( fo fe )2
Test Statictic df (r - 1)(c - 1)(2 1) (3 1) 2 where r is the number of rows in the
all cells fe
contigency table and c is the number of columns.
Alos f 0 : fo observed frequency in a particular cell
f e : expected frequency in a particular cell if H 0 is true
The average proportion is
X1 X 2 X 3 48 56 24
p 0.213 and
n1 n2 n3 200 200 200
X1 X 2 X 3 152 144 176
p 0.786
n1 n 2 n3 200 200 200
The value for the chi square distribution for 2 degrees of freedom at the 5% level of
significance is 5.991 .
2
0.05
Hence 2 0,05 5.991 and we reject the H 0 . There is enough evidence to conclude that there
is a difference between the age group and the day that they do their shopping.
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QUESTION 4
Observed Frequencies
Gender
No 104 36 140
Solution
Excel output:
Observed Frequencies
Gender
No 104 36 140
Expected Frequencies
Gender
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Yes 165.6 194.4 360
Level of Significance 0.01
Number of Rows 2
Number of Columns 2
Degrees of Freedom 1
Results
Critical Value 6.634897
Chi‐Square Test Statistic 62.6294
p‐Value 2.5E‐15
Reject the null hypothesis
Decision rule: df = 1. If STAT
2
> 6.635, reject H0.
Test statistic: STAT
2
= 62.6294
Decision: Since STAT
2
= 62.6294 is greater than the upper critical bound of 6.6349,
reject H0. There is enough evidence to conclude that there is significant difference
between the proportions of males and females who enjoy shopping for clothing at the
0.01 level of significance.
(b) p‐value = virtually zero. The probability of obtaining a test statistic of 62.6294 or
larger when the null hypothesis is true is virtually zero.
Decision: Since STAT
2
= 0.9881 is less than the upper critical bound of
6.635, do not reject H0. There is not enough evidence to conclude that the
proportion of males and females who enjoy shopping for clothing are
different.
(b) p‐value = 0.3202. The probability of obtaining a test statistic of 0.9881 or
larger when the null hypothesis is true is 0.3202.
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QUESTION 5
A survey was conducted in five countries. The percentage of respondents said that
they eat out once a week or more are as follows:
GERMANY 10%
FRANCE 12%
UNITED KINDOM 28%
GREECE 39%
US 57%
Suppose that the survey was based on 1000 respondents in each country
Solution:
EXCEL output:
Observed Frequencies
Column variable
Expected Frequencies
Column variable
Data
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Number of Rows 2
Number of Columns 5
Degrees of Freedom 4
Results
p-Value 2.3E-159
(a) H 0 : 1 2 3 4 5 ( the proportion of people that they eat out is the same
In all countries)
H1 : Not all j are equal. ( the proportion of people that they eat out is NOT
( f0 – fe )2
Test statistic: 2
STAT = 742.3961
All Cells fe
Decision: Since the calculated test statistic 742.3961 is greater than the critical value of
9.4877, you reject H 0 and conclude that there is a difference in the proportion of people
who eat out at least once a week in the various countries.
(b) p-value is virtually zero. The probability of obtaining a data set which gives rise to a test
statistic of 742.3961 or more is virtually zero if there is no difference in the proportion of
people who eat out at least once a week in the various countries.
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