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An analyst at a local bank wonders if the age distribution of customers coming for service at his branch in town is the same as
An analyst at a local bank wonders if the age distribution of customers coming for service at his branch in town is the same as at a branch located near the mall. He selects 100 transactions at random from each branch and researches the age information for the associated customer. These are the data : | |||||||||||||||||||||||||
Age | |||||||||||||||||||||||||
less than 30 | 30-55 | 56 or older | Total | ||||||||||||||||||||||
In town | 25 | 37 | 38 | 100 | |||||||||||||||||||||
mall | 30 | 48 | 22 | 100 | |||||||||||||||||||||
Total | 55 | 85 | 60 | 200 | |||||||||||||||||||||
1 | What is the null hypothesis if you want to check if the age patterns of customers are independent of bank location? | ||||||||||||||||||||||||
2 | What are the expected numbers for each cell in a 3 by 3 table if the null hypothesis is true? | ||||||||||||||||||||||||
Age | |||||||||||||||||||||||||
less than 30 | 30-55 | 56 or older | Total | ||||||||||||||||||||||
In town | 0 | ||||||||||||||||||||||||
mall | 0 | ||||||||||||||||||||||||
Total | 0 | 0 | 0 | 0 | |||||||||||||||||||||
3 | Use the chi square test to accept or reject the null hypothesis. What is the chi square test statistic? | ||||||||||||||||||||||||
4 | What is the chi square critical value and how many degrees of freedom does it have? Assume alpha is .05. | ||||||||||||||||||||||||
5 | What do you conclude? Provide both the statistical answer (reject or don't reject the NULL hypothesis) and also the "English" answer (are age patterns of customers independent of bank location?). | ||||||||||||||||||||||||
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