SOLUTION: A recent study by a LA based grocer designed to determine whether there was a relationship between the importance of promotional coupons and the size of the store revealed the foll

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Question 189737: A recent study by a LA based grocer designed to determine whether there was a relationship between the importance of promotional coupons and the size of the store revealed the following sample information:


Size of Store Important Not Important
Small 40 65
Large 60 40


What is your conclusion? Use the 0.05 level of significance.

Answer by stanbon(75887)   (Show Source): You can put this solution on YOUR website!
A recent study by a LA based grocer designed to determine whether there was a relationship between the importance of promotional coupons and the size of the store revealed the following sample information:

Size of Store Important Not Important
Small 40 65
Large 60 40

What is your conclusion? Use the 0.05 level of significance.
-----------
Ho: the row and column factos are independent.
Ha: they are dependent
--------
Put the 2 by 2 data set into a matrix and run a Chi-Sq
Test on it to get:
test statistic: Chi-Sq = 9.8363
p-value: 0.0017
---------------------
Conclusion: Since the p-value is less than 5%, reject Ho.
The row and column factors are dependent.
============================
Cheers,
Stan H.

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