Shown below is 2 x 3 contingency table with observed values from a sample of 500. At 95% confidence using the critical value approach, test for independence of the row and column factors.

Column Factor

Row Factor

X

Y

Z

A

40

50

110

B

60

100

140

100150250

1. Formulate the hypotheses, and claim

2.Select the significance level

Level of significance = 0.05

3.Select the test statistic and calculate its value

4.Identify the critical/p value(s) for the test statistic and state the decision rule

5.Compare calculated and critical values and reach a conclusion about the null hypothesis