Question

Please state your hypotheses, test statistic, pvalue and make a definitive conclusion statement.

15.4 Is HDTV ownership related to quantity of purchases of other electronics? A Best Buy retail outlet collected the following data for a random sample of its recent customers. Research question: At a = .10, is the frequency of in-store purchases independent of the number of large-screen HDTVs owned (defined as 50 inches or more)? Purchases In-Store Purchases Last Month HDTVs Owned None One Two or More Col Total R None 13 18 19 50 One 14 31 5 90 More Than One 13 31 66 110 Row Total 40 80 130 250 4

Please show all your work for my understanding! Thank you so much

Answer 1

Ans:

H₀: In-store purchases is independent of the number if large-screen HDTVs owned.

Ha: In-store purchases is dependent on the number if large-screen HDTVs owned.

	Observed(fo)
	None	One	more than one	Total
None	13	14	13	40
One	18	31	31	80
Two or more	19	45	66	130
Total	50	90	110	250
	Expected(fe)
	None	One	more than one	Total
None	8.0	14.4	17.6	40.0
One	16.0	28.8	35.2	80.0
Two or more	26.0	46.8	57.2	130.0
Total	50	90	110	250
	Chi square=(fo-fe)^2/fe
	None	One	more than one	Total
None	3.125	0.011	1.202	4.338
One	0.250	0.168	0.501	0.919
Two or more	1.885	0.069	1.354	3.308
Total	5.260	0.248	3.057	8.565

Test statistic:

Chi square=8.565

df=(3-1)*(3-1)=4

p-value=chidist(8.565,4)=0.0729

As,p-value<0.10,we reject the null hypothesis.

There is sufficient evidence to conclude that In-store purchases is dependent on the number if large-screen HDTVs owned.