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A? government\'s economic analysis branch recently released figures that they cl

ID: 3129223 • Letter: A

Question

A? government's economic analysis branch recently released figures that they claimed showed a growth spurt in the western region of a certain country that is divided into 5151 states. Using the accompanying? table, where the cell values are numbers of? states, determine if the percent change in real GDP by state was independent of region of the country.

1. What are the null and alternative? hypotheses?

A.

Upper H 0H0?:

GDP? % change is independent of region.

Upper H Subscript Upper AHA?:

GDP? % change increases from east to west.

B.

Upper H 0H0?:

GDP? % change is independent of region.

Upper H Subscript Upper AHA?:

GDP? % change is not independent of region.Your answer is correct.

C.

Upper H 0H0?:

GDP? % change is independent of region.

Upper H Subscript Upper AHA?:

GDP? % change increases from west to east.

D.

Upper H 0H0?:

GDP? % change is not independent of region.

Upper H Subscript Upper AHA?:

GDP? % change is independent of region.

2.

What is the test? statistic?

chi squared ?2 equals= ____

?(Round to two decimal places as? needed.)

3.

What is the? P-value?

?P-value equals=_____

?(Round to three decimal places as? needed.)

4.

What is the proper? conclusion?

A. Fail to reject HO

B. Reject HO

There: (is or is not) sufficient evidence to conclude that GDP? % change (increases from west to east or increases from east to west or is not independent of region or

is independent of region).

GDP % Change Table GDP % Change Bottom 60% Total Top 40% 10 4 Region West Midwest Southeast Northeast Total 15 12 12 12 51 2 21 10 30 Print Done

Explanation / Answer

A government's economic analysis branch recently released figures that they claimed showed a growth spurt in the western region of a certain country that is divided into 5151 states. Using the accompanying table, where the cell values are numbers of states, determine if the percent change in real GDP by state was independent of region of the country.

1. What are the null and alternative hypotheses?

A.Upper H 0H0:GDP % change is independent of region.

Upper H Subscript Upper AHA:GDP % change increases from east to west.

B.Upper H 0H0:GDP % change is independent of region.

Upper H Subscript Upper AHA:GDP % change is not independent of region. Your answer is correct.

C.Upper H 0H0:GDP % change is independent of region.

Upper H Subscript Upper AHA:GDP % change increases from west to east.

D.Upper H 0H0:GDP % change is not independent of region.

Upper H Subscript Upper AHA:GDP % change is independent of region.

2.

What is the test statistic?

chi squared 2 equals= 7.31

(Round to two decimal places as needed.)

3.

What is the P-value?

P-value equals=0.063

(Round to three decimal places as needed.)

4.

What is the proper conclusion?

A. Fail to reject HO     ( at 5% level)

B. Reject HO

There: not sufficient evidence to conclude that GDP % change (increases from west to east or increases from east to west or is not independent of region or is independent of region).

Chi-Square Test

Observed Frequencies

Column variable

Calculations

Top40%

Bottom60%

Total

fo-fe

West

10

5

15

3.8235

-3.8235

Midwest

4

8

12

-0.9412

0.9412

Southeast

5

7

12

0.0588

-0.0588

Northeast

2

10

12

-2.9412

2.9412

Total

21

30

51

Expected Frequencies

Column variable

Top40%

Bottom60%

Total

(fo-fe)^2/fe

West

6.1765

8.8235

15

2.3669

1.6569

Midwest

4.9412

7.0588

12

0.1793

0.1255

Southeast

4.9412

7.0588

12

0.0007

0.0005

Northeast

4.9412

7.0588

12

1.7507

1.2255

Total

21

30

51

Data

Level of Significance

0.05

Number of Rows

4

Number of Columns

2

Degrees of Freedom

3

Results

Critical Value

7.8147

Chi-Square Test Statistic

7.3060

p-Value

0.0628

Do not reject the null hypothesis

Chi-Square Test

Observed Frequencies

Column variable

Calculations

Top40%

Bottom60%

Total

fo-fe

West

10

5

15

3.8235

-3.8235

Midwest

4

8

12

-0.9412

0.9412

Southeast

5

7

12

0.0588

-0.0588

Northeast

2

10

12

-2.9412

2.9412

Total

21

30

51

Expected Frequencies

Column variable

Top40%

Bottom60%

Total

(fo-fe)^2/fe

West

6.1765

8.8235

15

2.3669

1.6569

Midwest

4.9412

7.0588

12

0.1793

0.1255

Southeast

4.9412

7.0588

12

0.0007

0.0005

Northeast

4.9412

7.0588

12

1.7507

1.2255

Total

21

30

51

Data

Level of Significance

0.05

Number of Rows

4

Number of Columns

2

Degrees of Freedom

3

Results

Critical Value

7.8147

Chi-Square Test Statistic

7.3060

p-Value

0.0628

Do not reject the null hypothesis