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Link to Minitab Chrome Page: (http://app.minitab.comLinks to an external site.) Use online software for this assignment. Question Set 1: Chi-Square Goodness-of-Fit. A representative sample of

Link to Minitab Chrome Page: (http://app.minitab.comLinks to an external site.) Use online software for this assignment. 

Question Set 1: Chi-Square Goodness-of-Fit.

A representative sample of 66 credit card holders who defaulted on their last credit card payment was surveyed about their education level (highest degree held). In that sample, 19 held graduate degrees, 22 held a bachelor's degree, and 25 held a high school diploma.

Use Minitab and the five-step hypothesis test procedure below to conduct a chi-square goodness-of-fit test to determine if there is evidence that the proportions of people in the population who defaulted on their credit card bill differ by education.

Question Set 1:

Step 1: State hypotheses and check assumptions.

Note: The assumption for a chi-square distribution is that all expected counts are at least 5. The expected counts can be calculated using the number of people surveyed divided by the number of groups.

Question Set 1:

Step 2:Use Minitab to conduct a chi-square goodness-of-fit test to determine if there is evidence that proportions of people in the population who defaulted on their credit card bills differ by education.

First,type the following table into a Minitab (http://app.minitab.comLinks to an external site.) spreadsheet:

Minitab Spreadsheet Table
Education Count
Bachelor 22
Graduate 19
HighSchool 25

Then, follow these Minitab steps:

  • Choose Stat > Tables > Chi-Square Goodness of Fit Test
  • For 'Observed counts' select the Count column
  • For 'Category names' select the Education column > OK
  • InsertALLof your statistical results (excluding the graphs)

Question Set 1:

Step 3: What is the value of the chi-square test statistic, per your Minitab results? Use two decimal places.

Question Set 1:

Step 4: Per your Minitab results, provide the p-value. Use three decimal places.

Question Set 1:

Step 5: Decide to reject or fail to reject the null hypothesis:

Because the p-value provided above is _________ (less OR greater) than an alpha level of 0.05, we _________ (reject OR fail to reject) the null hypothesis.

Question Set 1:

Step 6: State a real-world conclusion.Specifically, is there evidence that the proportions of people in the population who defaulted on their credit card bill differ by education? Simply answer the question.

Question Set 2: Chi-Square Test of Independence

Research question: Is there a relationship between primary campus and Pennsylvania (PA) state residency in the population of all Penn State undergraduate students for the Fall 2021 semester?

The following data were collected from a random sample of Penn State students:

Random Sample Data
Campus OutsidePA PA
University Park 35 25
Commonwealth 8 43
World Campus 48 32

Question Set 2_A:

State hypotheses and check assumptions.

Note: The assumption for a chi-square distribution is that all expected counts are at least 5. For the expected count formula, seehttps://online.stat.psu.edu/stat200/lesson/11/11.3/11.3.1

Question Set 2_B:

Use Minitab to conduct a chi-square test of independence to address the given research question.

First,type the table shown aboveat the beginning of Question Set 2into a Minitab spreadsheet.

Then, follow these Minitab steps:

  • Choose Stat > Tables > Cross Tabulation and Chi-Square
  • Click the dropdown menu > select 'Summarized data in a two-way table'
  • For 'Columns containing the table' double-click on 'OutsidePA' and 'PA'
  • For Labels for the 'Rows,' double-click on 'Campus'
  • Click the Chi-Square button > select 'Chi-square test' AND 'Expected cell counts' > OK > OK
  • InsertALLof your statistical results

(Note: You can also Minitab's Stat > Tables > Chi-Square Test for Association menu to run the same analysis.)

Question Set 2_C:

What is the value of the (Pearson) chi-square test statistic, per your Minitab results? Use three decimal places.

Question Set 2_D:

Per your Minitab results, provide the p-value. Use three decimal places.

Question Set 2_E:

Decide to reject or fail to reject the null hypothesis:

Because the p-value provided above is _________ (less OR greater) than an alpha level of 0.05, we _________ (reject OR fail to reject) the null hypothesis.

Question Set 2_F:

State a real-world conclusion. Specifically, is there a relationship between primary campus and Pennsylvania (PA) state residency in the population of all Penn State undergraduate students for the Fall 2021 semester? Simply answer the question.

Question Set 2_G:

By hand, compute the relative risk of being a Pennsylvania resident for World Campus students compared to University Park students.

Hint: For the formula, seehttps://online.stat.psu.edu/stat200/lesson/11/11.3/11.3.3Links to an external site.(scroll towards the bottom of the page).

Show your work.

Question Set 2_H:

Interpret the relative risk that you calculated in the previous question.

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