A contingency table of the size and type of area is given be

A contingency table of the size and type of area is given below.

Suppose that a researcher is interested in the following question:

Are unitary authorities more likely to be big compared to county councils?

(Here take ?big? to mean at least 125000 households.) Write down suitable null and alternative hypotheses.

Solution

Set up hypotheses as

H0: Unitary authorities and county are equally likely

Ha: They are different

The chi-square statistic is 21.5385. The P-Value is < 0.00001. The result is significant at p < 0.05.

As difference is significant reject null hypothesis.