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The Oxnard Retailers Anti-Theft Alliance (ORATA) published a study that claimed the causes of disappearance of inventory in retail stores were 55 percent shoplifting,
The Oxnard Retailers Anti-Theft Alliance (ORATA) published a study that claimed the causes of disappearance of inventory in retail stores were 55 percent shoplifting, 20 percent employee theft, and 25 percent faulty paperwork. The manager of the Melodic Kortholt Outlet performed an audit of the disappearance of 80 items and found the frequencies shown below. She would like to know if her store's experience follows the same pattern as other retailers. (What would be the expected value for each category if her store followed the same pattern?) Reason Frequency Shoplifting 32 Employee Theft 38 Poor Paperwork 10 6. What are the null and the alternative hypothesis for this scenario? 7. Under the null hypothesis that her store follows the published pattern, the expected number of items that disappeared due to shoplifting is: 32 +38 +11=80 .3080 = 24 8. Using a .1, the critical value you would use in determining whether the Melodic Kortholt's pattern differs from the published study is: 9. The value of the chi-square test statistic you would use in testing whether there is a difference from the published pattern is: 10. Give the critical value and the test statistic, should you reject, or not reject the null hypothesis, and why?
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