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In: Statistics and Probability

(Q) Consumer Reports uses surveys given to subscribers of its magazines to ensure reliability of automobiles....

(Q) Consumer Reports uses surveys given to subscribers of its magazines to ensure reliability of automobiles. This annual survey asks about problems that consumers have had with their cars, vans, SUVs, and trucks during the past 12 months. Each analysis is based on the number of problems in 100 automobiles.

Asia Europe USA Total

No Problems: 88 79 83 250

Problems: 12 21 17 50

Total: 100 100 100 300

Let ?0: the automobiles have the same percentage of problems within each group. ??: The automobiles don’t have the same percentage of problems within each group. The chi-square value for this table is ? 2= 2.928. (a) What is the expected frequency for the European automobiles that don’t have problems?

(b) How many degrees of freedom are there?

(c) What kind of test is this ?(Independence, homogeneity, or goodness of fit)

(d) For a test of hypothesis ?0 against ?? , find the critical value for ? = 0.01.

(e) Find the p-value.

(f) State your conclusion clearly

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