The Total in this chart must equal the Grand Total, Cell D19 in the above table.

Black 35856

White 37666

Primary Colors 38320

Tertiary Colors 38066

Total 149908

This table represents the observed data in the Chi Square analysis.

Find the Expected values for each of the colors.Saeko expects that the colors sell in equal amounts.

Color Type Sum of Yards

Black 37477

White 37477

Primary Colors 37477

Tertiary Colors 37477

Total 149908

Subtract the Expected values from the observed values

Color Type Sum of Yards

Black (1,621)

White 189

Primary Colors 843

Tertiary Colors 589

Square the values just found

Color Type Sum of Yards

Black 2,627,641

White 35,721

Primary Colors 710,649

Tertiary Colors 346,921

Divide each square by the expected value and add together

Color Type Sum of Yards

Black

White

Primary Colors

Tertiary Colors

Total

This total is your Chi Square test statistic

Use the 5 step hypothesis testing procedure to determine if Saeko's hypothesis that the colors sell in equal amounts is true.

What is the null hypothesis?

What is the alternative hypothesis?

What is the level of significance?

What is the Chi Square test statistic?

What is the Chi Square critical Value? Use =CHISQ.INV()

What is your answer to Saeko? State both the statstical answer (reject or do not reject, and what hypothesis), and also state your answer in English: What can Saeko learn from the data?