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The publisher of a sports magazine plans to offer new subscribers one of three gifts: a sweatshirt with the logo of their favorite team, a

  1. The publisher of a sports magazine plans to offer new subscribers one of three gifts: a sweatshirt with the logo of their favorite team, a coffee cup with the logo of their favorite team, or a pair of earrings also with the logo of their favorite team. In a sample of 600 new subscribers, the number selecting each gift is reported below. At the .05 significance level, is there a preference for the gifts or should we conclude that the gifts are equally well liked?

Ho: Gift preference is evenly distributed throughout the Gifts

H1: Gift preference is NOT evenly distributed throughout the Gifts

Gift Frequency
Sweatshirt 240
Coffee Cup 195
Earrings 165
  1. How many categories are there?
  2. What is the expected frequency for each Gift?
  3. How many degrees of freedom are there?
  4. What is the chi square critical value at the 0.05 significance level?
  5. Compute the 2 test statistic.
  6. What is the decision regarding the null hypothesis?
  7. Specifically, is there a preference for a particular gift?

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