Here we want to test the hypothesis
If we reject the null hypothesis we can conclude that there is evidence that the regulation is being followed.
It is given that the test statistic is
and for small values of when , we reject the null hypothesis.
From the given data now we want to calculate
Here
So the chi square statistic under the null hypothesis becomes
Suppose the significance level
Based on the information provided, at the given significance level , and the the rejection region for this left-tailed test is where the number 6.571 is the table value corresponding to from chi square table with 14 degrees of freedom.
Since the calculated value we reject the null hypothesis and conclude that there is evidence that the regulation is being followed.
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Note : If we have
the significance level
Based on the information provided, at the given significance level , and the the rejection region for this left-tailed test is where the number 4.66 is the table value corresponding to from chi square table with 14 degrees of freedom.
Since the calculated value we reject the null hypothesis at significance level , same conclusion can be obtained. That is there is evidence that the regulation is being followed.
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If we calculate p-value we get
Since p- value is very close to zero one can conclude that there is evidence that the regulation is being followed.
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