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2. Tests of independence A New York Times/CBS News poll conducted in October 2007 surveyed American consumers on their views of Chinese products. Consumers were
2. Tests of independence A New York Times/CBS News poll conducted in October 2007 surveyed American consumers on their views of Chinese products. Consumers were asked whether they noticed the country of origin of their purchases. They were also asked about changes in their buying habits because of the recalls of Chinese-produced goods. The following cross-classification table summarizes the responses to the two survey questions. Buying Habits Stopped Buying Don't Because of the Depends on Don't Know/Not Buy Recalls the Product Haven't Stopped Applicable Total Notice Country 73 155 82 582 18 910 of Origin Don't Notice 35 24 7 239 41 Total 108 179 89 59 The following questions walk you through the steps of a test of the null hypothesis that a consumer's buying habits for Chinese goods are independent of his awareness of country of origin. Fill in the three missing values in the cross-classification table. If a consumer's buying habits for Chinese goods are independent of his awareness of country of origin, then the expected frequency for the Don't Notice/Haven't Stopped cell is Each of the 10 cells makes a contribution to the chi-squared test statistic. The contribution of the Don't Notice/Haven't Stopped cell is The work of computing the contributions of each of the remaining nine cells has been done for you. The other nine cells combined contribute 88.769 to the chi-squared test statistic. The value of the test statistic is therefore x2 =Use the Distributions tool to answer the questions that follow. Chi-Square Distribution Degree ofFreedom = 6 Use a significance level of o = 0.01 to conduct the test of the hypothesis that a consumer's buying habits for Chinese goods are independent of his awareness of country of origin. According to the rejection region method, you reject the null hypothesis if x1 s v . The null hypothesis that buying habits are independent of awareness of product country of origin is v
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