Westminster Financial has released a summary of investor and

Westminster Financial has released a summary of investor and investment package information from the past fiscal year. During this time, Westminster provided a choice among 12 pre-designed investment packages, which it classified into three categories according to riskiness: risky, moderate/mixed, and conservative. Suppose that we?re interested in the possible relationship between the age of an investor and the riskiness of the investment package she chose. The following contingency table gives a summary of the information released by Westminster regarding age and riskiness of investment package for 150 investors. In the cells of the table are the respective observed frequencies, and three of the cells also have blanks. Fill in these blanks with the frequencies expected if the two variables, riskiness of investment package chosen and age of investor, are independent. Round your responses to at least two decimal places.

Solution

Prepare contingency table:

chi-square = 11.6
degrees of freedom = 4
probability = 0.021