Answer to Question #248074 in Statistics and Probability for THEBURBURGUY

Question

The head supervisor of three discount pharmacy stores wants to know how many discount coupons are redeemed in his stores. The findings of the survey are listed in the table below. At α=0.01

α=0.01, test the hypothesis that redemption level and location are related. 

                              Store LocationRedemption LevelMidtownNorthsideSouthsideHigh5010660Medium

899579Low241170

Answer 1

Chi square test:

$\chi=\sum\frac{(O_i-E_i)^2}{E_i}$

O_i is observed value,

E_i is expected value.

The chi-square statistic is 71.4761. The p-value is < 0.00001. The result is significant at p <0 .01.

Since p <0 .01, There is a significant relationship between level and location.