A test of chi-square for independence? (20 marks)

Are two categorical variables of payment and region independent?

Formulate the statistical hypothesis to test this

Run a statistical test of the hypothesis

Interpret your test result

Payment/region

1

2

3

4

Total

1

Oi=20

12

12

13

2

16

17

18

19

3

14

16

21

18

Total

For this exercise =0.05

Show your calculation of ei for each cell and show chi-square of with the degree of freedom.