Conduct the hypothesis test and provide the test statistic, critical value and P
ID: 3125227 • Letter: C
Question
Conduct the hypothesis test and provide the test statistic, critical value and P-value, and state the conclusion. A person randomly selected 100 checks and recorded the cents portions of those checks. The table below lists those cents portions categorized according to the indicated values. Use a .025
significance level to test the claim that the four categories are equally likely. The person expected that many checks for whole dollar amounts would result in a disproportionately high frequency for the first category, but do the results support that expectation?
Cents portion of check
0-24
25-49
50-74
75-99
Numbers
32
23
21
24
What is the Test Statistic =
Critical Value =
P-Value =
And final on hypothesis =
Cents portion of check
0-24
25-49
50-74
75-99
Numbers
32
23
21
24
Explanation / Answer
H0:All four categories are equally likely
Ha: atleast two are not equally likely
(Two tailed chi square test)
Prepare contingency table with expected values
Since p > 0.025 we accept nullhypothesis
All are equally likely is statistically evident.
Cents portion of check 0-24 25-49 50-74 75-99 Total Observed Numbers 32 23 21 24 100 Expected numbers 25 25 25 25 100 (O-E)^2/E 1.96 0.16 0.64 0.04 2.8 Chi square 2.8 df 3 p value 0.4235