In: Statistics and Probability
The director of transportation of a large company is interested in the usage of her van pool. She considers her routes to be divided into local and non-local. She is particularly interested in learning if there is a difference in the proportion of males and females who use the local routes. She takes a sample of a day's riders and finds the following:
| Male | Female | SUM | |
| Local | 50 | 90 | 140 | 
| Non local | 80 | 60 | 140 | 
| SUM | 130 | 150 | 280 | 
1= She will use this information to perform a chi-square hypothesis test using a level of significance of 0.01. The critical value is : ( )
2= She will use this information to perform a chi-square hypothesis test using a level of significance of 0.01. Which of the following is most correct?
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 Reject the null hypothesis and conclude that the proportion of males and females has no difference  | 
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 Reject the null hypothesis and conclude that the proportion of males and females has a difference  | 
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 Do not reject the null hypothesis and conclude that the proportion of males and females has no difference  | 
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 Do not reject the null hypothesis and conclude that the proportion of males and females has a difference  | 
3= What is the value of the test statistic to use in evaluating the alternative hypothesis that there is a difference in the two population proportions using α = 0.01?
4= The expected cell frequency in the Male and Local cell is ( )
5= The expected cell frequency in the Female and Non Local cell is ( )
6 =
which represents the relevant hypotheses?
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 H0: π1 − π2 ≤ 0 versus H1: π1 − π2 > 0  | 
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 H0: π1 − π2 ≠ 0 versus H1: π1 − π2 = 0  | 
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| 
 H0: π1 − π2 ≥ 0 versus H1: π1 − π2 < 0  | 
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 H0: π1 − π2 = 0 versus H1: π1 − π2 ≠ 0  | 
answers only !!
1).
Level of Significance =   0.01
Number of Rows =   2
Number of Columns =   2
Degrees of Freedom=(#row - 1)(#column -1) = (2- 1 ) * ( 2- 1 )
=   1
  
Critical Value =   6.635
2)
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 Reject the null hypothesis and conclude that the proportion of males and females has a difference  | 
3)
| Chi-Square Test of independence | |||||||
| Observed Frequencies | |||||||
| male | female | Total | |||||
| local | 50 | 90 | 140 | ||||
| non local | 80 | 60 | 140 | ||||
| Total | 130 | 150 | 280 | ||||
| Expected frequency of a cell = sum of row*sum of column / total sum | |||||||
| Expected Frequencies | |||||||
| male | female | Total | |||||
| local | 130*140/280=65 | 150*140/280=75 | 140 | ||||
| non local | 130*140/280=65 | 150*140/280=75 | 140 | ||||
| Total | 130 | 150 | 280 | ||||
| (fo-fe)^2/fe | male | female | total | ||||
| local | 3.462 | 3.000 | 6.462 | ||||
| non local | 3.462 | 3.000 | 6.462 | 
Chi-Square Test Statistic,χ² = Σ(fo-fe)^2/fe =  
12.923
4) Expected frequency of a cell = sum of row*sum of column / total sum = 130*140/280=65
5) Expected frequency of a cell = sum of row*sum of column / total sum = 150*140/280=75
6) H0: π1 − π2 = 0 versus H1: π1 − π2 ≠ 0