A study was conducted amongn= 500 individuals, with 300 smokers and 200 non-smokers included. The objective was to test whether the allergy symptoms depend on their smoking preferences. A two-by-two contingency table summarized observed frequencies as follows.

Group	Allergic	No Allergy	Total
Smokers	165	135	300
Non-Smokers	85	115	200
Total	250	250	500

At the significance level= 0.01,test whether smoking habits and allergic symptoms are related to each other.

1. Evaluate estimated expected counts and place them into the table below. 2. Derive the test statistic for testing homogeneity hypothesis

3. Formulate the rejection rule and make a conclusion whether there is dependence between smoking habits and allergy symptoms.

Estimated Expected Counts

Group	Allergic	No Allergy	Total
Smokers			300
Non-Smokers			200
Total	250	250	500