Interpretation: Test of Independence Consider Charlotte’s study of source of fraud/identity theft and residential setting (see Problem 6). She computed sample x 2 510.2.

(a) How many degrees of freedom are used? Recall that there were 5 sources of fraud/identity theft and, of course, 2 residential settings. Approximate the P-value and conclude the test at the 5% level of significance. Would it seem that residential setting and source of fraud/identity theft are independent?

(b) From this study, can Charlotte identify which source of fraud/identity theft is dependent with respect to residential setting? Explain.

For Problems 11–23, please provide the following information.

(a) What is the level of significance? State the null and alternate hypotheses.

(b) Find the value of the chi-square statistic for the sample.

Are all the expected frequencies greater than 5? What sampling distribution will you use? What are the degrees of freedom?

(c) Find or estimate the P-value of the sample test statistic.

(d) Based on your answers in parts

(a) to (c), will you reject or fail to reject the null hypothesis of independence?

(e) Interpret your conclusion in the context of the application.

Use the expected values E to the hundredths place.

AppendixLO1