The following sample data reflect shipments received by a la
The following sample data reflect shipments received by a large firm from three different vendors.
Use Table 3.
Choose the competing hypotheses to determine whether quality is associated with the source of the shipments.
Calculate the value of the test statistic. (Round intermediate calculations to 4 decimal places and your final answer to 2 decimal places.)
Specify the decision rule at a 1% significance level. (Round your answer to 3 decimal places.)
Reject H0 if 2df >
Should the firm be concerned about the source of the shipments?
| The following sample data reflect shipments received by a large firm from three different vendors. |
Solution
ANSWER OF PART (a) H0: Quality and source of shipment (vendor) are independent.;
HA: Quality and source of shipment (vendor) are dependent.
ANSWER OF PART (b1)
here we have 2x3 contigency table and d.f for chi-square=(2-1)(3-1)=2
E(34)=(79x166)/519=25.26 ,E(14)=(79x86)/519=13.09 ,E(31)=(79x267)/519,
E(132)=(440x166)/519,E(72)=(440x86)/519,E(236)=(267x440)/519=226.36,
the chi-square test statisitc =(34-E(34))2 E(34)+...+(236-E(236))2 /E(236)=6.33
2 chi-square for the above 2x3 contingency table=6.33
ANSWER OF PART (b2)
NO
if chi-squre is greater than 9.210 then we shall reject the null hypothesis
ANSWER OF PART (b3)
Do not reject H0; quality and source of shipment are not dependent
ANSWER OF PART (b4)
| vendor | defective | acceptable | total |
| 1 | 34 | 132 | 166 |
| 2 | 14 | 72 | 86 |
| 3 | 31 | 236 | 267 |
| total | 79 | 440 | 519(grand total) |
