Expected Frequencies: For cell (1,1) (Traditional Medicare, Yes): 11 = ( 352 334 ) 800 = 117568 800 = 146.96 E 11 = 800 (352334) = 800 117568 =146.96 For cell (1,2) (Traditional Medicare, No): 12 = ( 352 466 ) 800 = 163632 800 = 204.54 E 12 = 800 (352466) = 800 163632 =204.54 For cell (2,1) (Medicare HMO, Yes): 21 = ( 448 334 ) 800 = 149632 800 = 187.04 E 21 = 800 (448334) = 800 149632 =187.04 For cell (2,2) (Medicare HMO, No): 22 = ( 448 466 ) 800 = 208448 800 = 260.56 E 22 = 800 (448466) = 800 208448 =260.56 Chi-Square Statistic: Now, we compute the chi-square statistic using the observed and expected frequencies: 2 = ( 133 146.96 ) 2 146.96 + ( 219 204.54 ) 2 204.54 + ( 201 187.04 ) 2 187.04 + ( 247 260.56 ) 2 260.56 2 = 146.96 (133146.96) 2 + 204.54 (219204.54) 2 + 187.04 (201187.04) 2 + 260.56 (247260.56) 2