Question

From 89 of its restaurants, Noodles & Company managers collected data on per-person sales and the percent of sales due to "potstickers" (a popular food item). Both numerical variables failed tests for normality, so they tried a chi-square test. Each variable was converted into ordinal categories (low, medium, high) using cutoff points that produced roughly equal group sizes. At α= .10, is per-person spending independent of percent of sales from potstickers?

	Potsticker % of Sales
Per-Person Spending	Low			Medium			High			Row Total
Low		13			12			5			30
Medium		9			12			2			23
High		6			15			15			36
Col Total		28			39			22			89

(a) The hypothesis for the given issue is H₀: Percentage of Sales and Per-Person Spending are independent.

	No
	Yes

(b)
Calculate the chi-square test statistic, degrees of freedom, and the p-value. (Round your test statistic value to 2 decimal places and p-value to 4 decimal places. Leave no cells blank - be certain to enter "0" wherever required.)

Test statistic
d.f.
p-value

(c) We reject the null and find dependence.

	Yes
	No

Answer 1

(a) Yes.

H0: Percentage of Sales and Per-Person Spending are independent.

(b) Test statistics = 12.14

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

p-value = 0.0163

(c) yes, we reject null hypothesis and found dependence. since p-value < 0.10