An analyst wonders if the age distribution of customers coming for service in town is the same as at the mall branch.

He selects 100 transactions at random from each branch and researches the age information for the associated customer. These are the data :

Age

< 30

30 - 55

56 +

Totals

Distribution

In town

24

37

35

96

mall

29

49

19

97

Totals

53

86

54

193

Enter your answers or calculations in the yellow cells.

1

Write the null hypothesis regarding distribution of ages by bank locations town and mall branch.

Null Hypothesis (H): There is no significant difference in the distribution of ages among bank locations (town and mall branches). The null hypothesis assumes that the observed distribution is consistent with the expected distribution.

Which type of test is required (goodness of fit, independence, homogeneity)?

goodness of fit

2

Compute

Age Groups

< 30

30 - 55

56 +

Expected (E)

In town

E<30

mall

Age Groups

< 30

30 - 55

56 +

(O - E)2/E

In town

mall

3

What is the chi square test statistic? Note: =CHISQ.TEST does not compute the chi-squared test statistic. It computes p-value.

4

What is the degrees of freedom of the chi-squared test statistic?

Use an Excel function to compute the critical value at alpha = 0.05.

5

State your decision about H0 with the significance level.

Are the bank distributions the same (Yes/No)?