Statistics Bba2 Worksheet #5 Solutions)

Question 1 H0: There is no association between education in economics and the objectives of business persons in Kingston. H1 : There is an association between an education in economics and the objectives of business persons in Kingston. Level of Significance 0.01 The number of degree of freedom df = ( 2 -1) × ( 2 – 1) = 1

Studied Economics Did Not Study Economics Total

Profit Maximizers fO fE 200 120 200 280 400 400

 f o − f e − 0.5  ∑ fe 52.67 35.11 22.57 15.05 2 125.4 X cal

Revenue Maximizers fO fE 100 180 500 420 600 600

Total fO 300 700 1,00 0

fE 300 700 1,00

2

Conclusion: Since X 2 cal > 6.635 we reject the H0 and accept H1, there is an association between education in economics and the objectives of business persons in Kingston.

Question 2 H0: Three is no relationship between the type of community where the person resides and the portion of paper read first. H1: There is a relationship between the type of community where the person resides and the portion of the paper read first. Level of significance 0.01 The number of degrees of freedom, df =( 3 – 1) × (3-1) = 4

URBAN RURAL FARM TOTAL

NEWS fO 14 17 8 39

fe 14.04 12.93 12.03 39

SPORTS fO fe 13 21.6 19 19.89 28 18.51 60 60

(

COMICS fO fe 36 27.36 22 25.19 18 23.45 76 76

f −f ) ∑ 0f e e 0.00011 3.42 2.73 1.28 0.04 0.40 1.35 4.87 1.27 2 X cal = 15.36 2

TOTAL fO 63 58 544 175

fe 63 58 544 175

Conclusion: Since X2 cal > 13.277 we reject H0 and accept H1, i.e. there is a relationship between the type of community where the person resides and the portion of the paper read first at the 0.01 level of significance.