Business Statistics

A travel guide book claims that it rains on 70% of days in Seattle (and, therefore, that it does not rain on 30% of days). Barbara wants to conduct a chi-squared test for goodness of fit to test this assertion. She takes a random sample of 120 days and finds that it rained in Seattle on 70 of these days.

a. Determine the expected frequency of days of rain in Seattle for the test. [2 marks]

b. Determine the value of the sample chi-squared statistic. [3 marks]

c. Determine the degrees of freedom of the chi-squared statistic. [2 marks]

d. Determine the critical value of the chi-squared statistic at the 5% significance level. [1 mark]

e. Determine whether there is evidence, at the 5% significance level, that the guide book's claim is false. Give two reason for your answer.