The Population Frequencies Are Equal To The Expected Frequencies. The Null Hypothesis Is False

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SHEET 1

1. A department store, A, has four competitors: B, C, D, and E. Store A hires a consultant to


determine if the percentage of shoppers who prefer each of the five (5) stores is the same. A
survey with 1100 randomly selected shoppers is conducted, and below are the results of which
one of the store's shoppers prefer. Is there enough evidence using a significance level 𝛼𝛼 = 0.05 to
conclude that the proportions are really the same? (7 items x 3 points)

Store A B C D E

Number of Shoppers 262 234 204 190 210

a. The null hypothesis 𝐻𝐻0 : The population frequencies are equal to the expected
frequencies.
b. The alternative hypothesis 𝐻𝐻𝑎𝑎: The null hypothesis is false
c. The level of significance 𝛼𝛼 = 0.05
d. The degrees of freedom: k –1=5
5–1=4
e. The test statistic:

STORE % of E O O-E (O – E)2 (O-E)2


SHOPPERS E

A 20% 0.2 x 110 = 220 262 42 1764 8.018

B 20% 0.2 x 110 = 220 234 14 196 0.891

C 20% 0.2 x 110 = 220 204 -16 256 1.163

D 20% 0.2 x 110 = 220 190 -30 900 4.091

E 20% 0.2 x 110 = 220 210 -10 100 0.455

f. The critical value: 9.488


g. Decision: Since x2 14.618 > 9.488, there is enough statistical evidence to
reject the null hypothesis and believe that the costumers don’t prefer to the
five stores equally.

SHEET 2
2. Suppose that we have a 6-sided die. We assume that the die is unbiased (upon rolling the die,
each outcome is equally likely). An experiment is conducted in which the die is rolled 240 times.
The outcomes are in the table below. At a significance level of 𝛼𝛼 = 0.05, is there enough evidence
to support the hypothesis that the die is unbiased? (7 items x 3 points)

Outcome 1 2 3 4 5 6
Frequency 34 44 30 46 51 35

a. The null hypothesis 𝐻𝐻0 : Each face is equally likely to be the outcome of single roll.
b. The alternative hypothesis 𝐻𝐻𝑎𝑎 : the null hypothesis is false.
c. The level of significance 𝛼𝛼 = 0.05
d. The degrees of freedom: k – 1 = 6
6 -1 = 5
e. The test statistic:
FACE E O O-E (O – E)2 (O-E)2
E

1 240/6= 40 34 -6 36 0.9

2 240/6= 40 44 4 16 0.4

3 240/6= 40 30 -10 100 2.5

4 240/6= 40 46 6 36 0.9

5 240/6= 40 51 11 121 3.025

6 240/6= 40 35 -5 25 0.625

f. The critical value: 0.01 and k-1, the critical value is 15.086
g. Decision: Since x2  8.35 < 15.086, I fail to reject the null hypothesis, that the
dies is fair.

SHEET 3

3. The side effects of a new drug are being tested against a placebo. A simple random
sample of 565 patients yields the results below. At a significance level of 𝛼 = 0.10, is
there enough evidence to conclude that the treatment is independent of the side effect of
nausea?
Result Drug Placebo Total

Nausea 36 13 49

No nausea 254 262 516

Total 290 275 565


a. The null hypothesis 𝐻0:

- The treatment and response are independent


b. The alternative hypothesis 𝐻𝑎:

- The treatment and response are dependent


c. The level of significance 𝛼 =
- 0.10
d. The degrees of freedom:
- (2-1) (2-1)=1
e. The test statistic:
ROW, E O O-E (O – E)2 (O-E)2
E
COLUMN
1,1 25.15 36 10.85 117.72 4.681
1,2 23.85 13 -10.85 117.72 4.936
2,1 264.85 254 -10.85 117.72 0.444
2,2 251.15 262 10.85 117.72 0.469

f. The critical value:


- 2.17
g. Decision:
- Since x2  10.53 > 2.71, There is enough statistical evidence to reject the null and
to believe that there is a relationship between the treatment and response.

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