SOLUTION: The chief of security for the Mall of the Dakotas was directed to study the problem of missing goods. He selected a sample of 100 boxes that had been tampered with and ascertained

Question 137014: The chief of security for the Mall of the Dakotas was directed to study the problem of missing goods. He selected a sample of 100 boxes that had been tampered with and ascertained that for 60 of the boxes, the missing pants, shoes, and so on were attributed to shoplifting. For 30 other boxes employees had stolen the goods, and for the remaining 10 boxes he blamed poor inventory control.
In his report to the mall management, can he say that shoplifting is twice as likely to be the cause of the lossas compared with either employee theft or poor inventory control and that employee theft and poor inventory control are equally likely? Use the 0.02 level.
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
The chief of security for the Mall of the Dakotas was directed to study the problem of missing goods. He selected a sample of 100 boxes that had been tampered with and ascertained that for 60 of the boxes, the missing pants, shoes, and so on were attributed to shoplifting. For 30 other boxes employees had stolen the goods, and for the remaining 10 boxes he blamed poor inventory control.
In his report to the mall management, can he say that shoplifting is twice as likely to be the cause of the losses compared with either employee theft or poor inventory control and that employee theft and poor inventory control are equally likely? Use the 0.02 level.
-------------------------------------
Observed DATA-------Expected DATA
60........................66
30........................17
10........................17
===============================
Ho: p(sl)=66%; p(et)=17%; p(ic)=17%
Ha: At least one of the probabilities is wrong
---------
Run a Chi-Sq Test to get:
Chi-Sq = 5.6963
p-value = 0.05795
---------------
Since p-value is greater than 2%, Reject Ho.
Observed frequencies are statistically different than predicted values
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Cheers,
Stan H.
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