A sample of 150 items was rated with respect to price and qu
Solution
1.
Doing an Expected Value Chart,
Using chi^2 = Sum[(O - E)^2/E],
chi^2 = 32.58839184
With df = (a - 1)(b - 1), where a and b are the number of categories of each variable,
a = 3
b = 3
df = 4
Thus, the critical value is
significance level = 0.05
chi^2(critical) = 9.487729037
Also, the p value is
P = 1.45018*10^-6
As chi^2 > 9.4877, and P < 0.05, we REJECT THE NULL HYPOTHESIS.
Thus, there is significant evidence that price and quality are not independent. [CONCLUSION]
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| 8.866667 | 14.93333 | 11.2 |
| 17.48 | 29.44 | 22.08 |
| 11.65333 | 19.62667 | 14.72 |
