• You pay off your credit card balance every month to earn the 2% "cash-back" reward and avoid 12-28% interest
• Your EXPECTED values are the amounts you budgeted the year before for this current year.
• The OBSERVED values are the amounts you actually charged each month this year.
• The monthly differences are due to vacations, holidays, birthdays, auto repairs, medical, and other unusual expenses.

a) State your null hypothesis, Ho: ________________ and alternate hypothesis, Ha: __________________

Assume a 5% significance level (alpha )

b) What are the degrees of freedom (k - 1) in this problem? _____,

c) What is the X2 Critical value? ________

d) Fill in the Table below to calculate your X2 Test value:__________

e) Is the test statistic greater or less than the critical value, so do you accept or reject Ho? _______

Real world interpretation?_______________________________

f) From software what is the p-value and is it less or greater than our of 5% ? [should agree with (e) ]

MONTH	BUDGETED ($)	ACTUAL ($)	(E - O)2 / E
JAN	1500	1490
FEB	900	880
MAR	600	550
APR	1000	950
MAY	800	850
JUN	800	800
JUL	1500	1450
AUG	1500	1500
SEP	1000	975
OCT	800	750
NOV	1100	1100
DEC	2300	2350
		Total is X2 Test >