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A major credit card company reported that historically 50% of their customers applied for the Double Miles Card, 30% of custo
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Answer #1
Category Observed Frequency (O) Proportion, p Expected Frequency (E) (O-E)²/E
Double miles 55 0.5 120 * 0.5 = 60 (55 - 60)²/60 = 0.4167
Standard 30 0.3 120 * 0.3 = 36 (30 - 36)²/36 = 1
Triple miles 35 0.2 120 * 0.2 = 24 (35 - 24)²/24 = 5.0417
Total 120 1.00 120 6.4583

Test statistic:  

χ² = ∑ ((O-E)²/E) = 6.4583

df = n-1 = 2

p-value = CHISQ.DIST.RT(6.4583, 2) = 0.0396 = 0.04

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