Question

The American Association of Retired officers (AAR) in the US Army says that 45% of the retired officers get another new job (NJ) in the army, 40% continues to live with open a business (BU) in the US, and 4% invest money (IM) overseas. A random sample of 200 retired officers at a blood bank yielded the following results:

After retirement	NJ	PE	BU	IM
#of people	84( )	73 ( )	27 ( )	16 ( )

Conduct a Chi-Square goodness-of-fit test to test the claim that the retired officers' distribution follows that of what is reported by the AAR. Use a significance level of 0.05 and the p-value to make your decision. Enter the expected values in ( ) within the table above and all answers to the significance test in the box below. The hypotheses have been filled in for you.

Ho: The blood donors distribution does follow that of reported by AAR (i.e., P(NJ)= 0.45, P(PE) 0.40, P(BU) 0.11, P(IM)0.04)

HA: The blood donors distribution does not follow that of reported by AAR (i.e, at least one proportion different than as listed in Ho)

Test Statistic:

P--value:

Result of the hypothesis test (Decision):

Interpretation of result in complete English sentences, using the context of the problem:

Answer 1