Question

In: Statistics and Probability

It has been suggusted that the highest priority of retirees is travel. Thus, a study was...

It has been suggusted that the highest priority of retirees is travel. Thus, a study was conducted to investigate the differences in the length of stay of a trip for pre- and post-retirees. A sample of 681681 travelers were asked how long they stayed on a typical trip. The observed results of the study are found below.

Number of Nights Pre-retirement Post-retirement Total
4−74−7 238238 161161 399399
8−138−13 7878 6363 141141
14−2114−21 3030 5656 8686
2222 or more 2020 3535 5555
Total 366366 315315 681681


With this information, construct a table of estimated expected values.

Number of Nights Pre-retirement Post-retirement
4−74−7
8−138−13
14−2114−21
2222 or more


Now, with that information, determine whether the length of stay is independent of retirement using α=0.01α=0.01.

(a) Find test value χ2=χ2=

(b) Find the degrees of freedom:

(c) Find the critical value:  

(d) The final conclusion is

A. We can reject the null hypothesis that the length of stay is independent of retirement and accept the alternative hypothesis that the two are dependent.
B. There is not sufficient evidence to reject the null hypothesis that the length of stay is independent of retirement.

Solutions

Expert Solution

Option A is correct.

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