Question 140267: To see whether silicon chip sales are independent of where the US economy is in the business cycle, data have been calculated on the weekly sales of a firm and on whether the US economy was rising to a cycle peak, at a cycle peak, falling to a cycle peak or at a cycle trough. The results are
Weekly Chip Sale
HIGH MEDIUM LOW TOTAL
Economy at peak 20 7 3 30
Economy at trough 30 40 30 100
Economy rising 20 8 2 30
Economy Falling 30 5 5 40
TOTAL 100 60 40 200
State the null hypothesis. At 0.10 significance level, what is your conclusion?
Given the tabulated value of test statistic is 10.645
Pls hlep. I am student from long distance education and these are the kind of questions that come for my exam
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! To see whether silicon chip sales are independent of where the US economy is in the business cycle, data have been calculated on the weekly sales of a firm and on whether the US economy was rising to a cycle peak, at a cycle peak, falling to a cycle peak or at a cycle trough. The results are
Weekly Chip Sale
HIGH MEDIUM LOW TOTAL
Economy at peak 20 7 3 30
Economy at trough 30 40 30 100
Economy rising 20 8 2 30
Economy Falling 30 5 5 40
TOTAL 100 60 40 200
State the null hypothesis
Ho: Chip sales and the economy are independent
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At 0.10 significance level, what is your conclusion?
Given the tabulated value of test statistic is 10.645?
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The critical value for this one-tail, Chi-Sq test,
with df = (4-1)(3-1) = 6, and alpha = 10% is 10.645
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Since the test statistic and the critical value are the
same, there is no conclusion from this test.
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Comment: Your problem statement gives the test statistic
as 10.645 but running a Chi-Sq. Test against the data
shows a test statistic of 34.597222... and corresponding
p-value of 5.157 x 10^-6. Those numbers would provide
strong evidence the Ho should be rejected.
Are you sure your problem states that the test statistic
is 10.645?
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Cheers,
Stan H.
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