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Service suppliers tend to cluster close together to minimise competition, so if you are in an Australian city looking for a Coles and you find

Service suppliers tend to cluster close together to minimise competition, so if you are in an Australian city looking for a Coles and you find a Woolworth, the one you are looking for is likely to be nearby. Thus there should be no difference in people's perception about the ease of accessing different main brand services suppliers. For example, assumea sample of 1272 people has been surveyed on how easy it is to access three supermarkets.

Supermarket

Aldi

Coles

Woolworth

Total

Easy to find

308

280

260

848

Difficult to find

132

160

132

424

Total

440

440

392

1272

Required:

a.State the appropriate null and alternative hypothesis to test independence.(2 marks)

b.Calculate the expected frequencies (correct to two decimal places) for the six cells with missing values, assuming independence between the supermarket and the ease of finding. Show workings. (6 marks)

Supermarket

Aldi

Coles

Woolworth

Total

Easy to find

?

?

?

848

Difficult to find

?

?

?

424

Total

440

440

392

1272

c.Using the information given, and part b, calculate the2 (chi-squared) value.Show workings (3 marks)

d.Using the appropriate table, determine the2 (chi-squared) critical value, using a 0.05 significance level. Based on the critical value and the value calculated in part c, state whether you fail to reject or reject the null hypothesis. What is your conclusion? (3 marks)

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