Question

In: Statistics and Probability

An entrepreneur was opening a new fitness equipment store and wanted to determine the quantity of...

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?

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