In: Statistics and Probability
An entrepreneur was opening a new fitness equipment store and wanted to determine the quantity of each type aerobic equipment she needed to have in inventory. In a previously opened store she opened, historical data showed the following to be monthly sales by machine in terms of percentage of units sold:
Treadmill 42%
Elliptical 22%
Stairmaster 22%
Recumbent bike 14%
She sold 200 total units in the first month of business with the following distribution:
Treadmill 91
Elliptical 35
Stairmaster 47
Recumbent bike 27
* THESE ARE THE OBSERVED VALUES
If her expected sales are to match her previous store, did her observed values equal her expected values at a 5% level of significance?
*Use and show the 5-step process along with any supporting information.
Expected Values
Treadmill 200 x .42 = 84
Eliptical 200 x .22 = 44
Stairmaster 200 x .22 = 44
Recumbent Bike 200 x .14 = 28
Step 1: H0=
HA=
Step 2: alpha =
Step 3: Test Statistic:
Step 4: Decision Rule:
Step 5: Calculation and Decision: X2= E((f0-fe)2/fe)=
Reject or do not reject H0? Why?