In: Statistics and Probability
Use the 5 step hypothesis testing procedure to determine if Saeko's hypothesis that the colors sell in equal amounts is true.
What is the null hypothesis?
What is the alternative hypothesis?
What is the level of significance?
What is the Chi Square critical Value?
Customer Color Name Color
Type Yards Meters
1 Coriander White 1,067.00
975.66
2 Black Black 917.00
838.50
3 Daffodil Yellow 762.00
696.77
4 Black Black 735.00
672.08
5 Opal Blue 551.00
503.83
6 Toffee Brown 709.00
648.31
7 Ruby Red 792.00
724.20
8 Ash Blue 830.00
758.95
9 Black Black 670.00
612.65
10 Ash Blue 292.00
267.00
11 Black Black 744.00
680.31
12 Whirlpool Blue 943.00
862.28
13 Verde Green 947.00
865.94
14 Regal Purple 945.00
864.11
15 Lynx Brown 774.00
707.75
16 Yellow Rose Yellow 801.00
732.43
17 Chocolate Brown 750.00
685.80
18 Mist White 629.00
575.16
19 Whirlpool Blue 113.00
103.33
20 Alfalfa Green 344.00
314.55
21 Ruby Red 162.00
148.13
22 Verde Green 964.00
881.48
23 Sky White 517.00
472.74
24 Black Black 1,223.00
1,118.31
25 Whirlpool Blue 200.00
182.88
26 Black Black 879.00
803.76
27 Mist White 999.00
913.49
28 Alfalfa Green 598.00
546.81
29 Jade Green 662.00
605.33
30 Yellow Rose Yellow 368.00
336.50
31 Cream White 529.00
483.72
32 Black Black 1,100.00
1,005.84
33 Ruby Red 870.00
795.53
34 Mist White 342.00
312.72
35 Yellow Rose Yellow 747.00
683.06
36 Black Black 1,160.00
1,060.70
37 Sky White 628.00
574.24
38 Periwinkle Purple 185.00
169.16
39 Coriander White 978.00
894.28
40 Black Black 607.00
555.04
41 Yellow Rose Yellow 387.00
353.87
42 Black Black 255.00
233.17
43 Periwinkle Purple 742.00
678.48
44 Black Black 414.00
378.56
45 Blush Red 345.00
315.47
46 Black Black 892.00
815.64
47 Mist White 727.00
664.77
48 Coriander White 584.00
534.01
49 Cream White 321.00
293.52
50 Verde Green 478.00
437.08
51 Black Black 931.00
851.31
52 Daffodil Yellow 539.00
492.86
53 Chocolate Brown 767.00
701.34
54 Daffodil Yellow 369.00
337.41
55 Regal Purple 378.00
345.64
56 Daffodil Yellow 376.00
343.81
57 Coriander White 957.00
875.08
58 Black Black 929.00
849.48
59 Black Black 959.00
876.91
60 Lynx Brown 994.00
908.91
61 Periwinkle Purple 714.00
652.88
62 Daffodil Yellow 912.00
833.93
63 Coriander White 776.00
709.57
64 Verde Green 895.00
818.39
65 Lynx Brown 706.00
645.57
66 Alfalfa Green 105.00
96.01
67 Cream White 165.00
150.88
68 Daffodil Yellow 505.00
461.77
69 Periwinkle Purple 661.00
604.42
70 Cream White 226.00
206.65
71 Black Black 472.00
431.60
72 Opal Blue 184.00
168.25
73 Cream White 191.00
174.65
74 Cream White 238.00
217.63
75 Coriander White 894.00
817.47
76 Mist White 488.00
446.23
77 Verde Green 400.00
365.76
78 Black Black 1,618.00
1,479.50
79 Blush Red 374.00
341.99
80 Opal Blue 359.00
328.27
81 Daffodil Yellow 553.00
505.66
82 Mist White 439.00
401.42
83 Alfalfa Green 448.00
409.65
84 Jade Green 290.00
265.18
85 Ruby Red 907.00
829.36
86 Verde Green 402.00
367.59
87 Cream White 123.00
112.47
88 Black Black 981.00
897.03
89 Chocolate Brown 247.00
225.86
90 Regal Purple 805.00
736.09
91 Sky White 358.00
327.36
92 Regal Purple 461.00
421.54
93 Yellow Rose Yellow 540.00
493.78
94 Lynx Brown 964.00
881.48
95 Regal Purple 317.00
289.86
96 Ash Blue 190.00
173.74
97 Periwinkle Purple 423.00
386.79
98 Black Black 1,761.00
1,610.26
99 Black Black 912.00
833.93
100 Blush Red 258.00
235.92
101 Regal Purple 968.00
885.14
102 Sapphire Blue 517.00
472.74
103 Whirlpool Blue 362.00
331.01
104 Yellow Rose Yellow 125.00
114.30
105 Whirlpool Blue 504.00
460.86
106 Sapphire Blue 427.00
390.45
107 Chocolate Brown 557.00
509.32
108 Toffee Brown 498.00
455.37
109 Sapphire Blue 216.00
197.51
110 Whirlpool Blue 174.00
159.11
111 Black Black 470.00
429.77
112 Regal Purple 644.00
588.87
113 Opal Blue 436.00
398.68
114 Blush Red 768.00
702.26
115 Coriander White 1,456.00
1,331.37
116 Whirlpool Blue 385.00
352.04
117 Ash Blue 869.00
794.61
118 Blush Red 416.00
380.39
119 Black Black 634.00
579.73
120 Ruby Red 302.00
276.15
121 Mist White 892.00
815.64
122 Chocolate Brown 240.00
219.46
123 Opal Blue 523.00
478.23
124 Toffee Brown 710.00
649.22
125 Yellow Rose Yellow 245.00
224.03
126 Sky White 736.00
673.00
127 White White 2,389.00
2,184.50
128 Black Black 499.00
456.29
129 Chocolate Brown 111.00
101.50
130 Ash Blue 52.00
47.55
What is the null hypothesis?
The null hypothesis, H0: The colours sell in equal amounts is true.
What is the alternative hypothesis?
The alternative hypothesis, Ha: The colours sell in equal amounts is not true.
What is the level of significance?
The level of significance is 5% or 0.05.
What is the Chi-Square critical Value?
The Chi-Square critical Value for the degree of freedom = n-1 = 130-1 = 129 and significance level 0.05 is 156.50752160.
The Chi-square test statistics output is calculated with the help of Excel:
Go to Megastat>Chi-square/crosstab.
Select the Contingency table option.
Select the Input data and click OK.
The required output is:
(I wasn't able to upload the complete output due to characters limit. So, please run the analysis if you feel the need).
Col 1 | Col 2 | Col 3 | Col 4 | Col 5 | Col 6 | Col 7 | Col 8 | Col 9 | Col 10 | Col 11 | Col 12 | Col 13 | Col 14 | Col 15 | ||
Row 1 | Observed | 1067 | 917 | 762 | 735 | 551 | 709 | 792 | 830 | 670 | 292 | 744 | 943 | 947 | 945 | 774 |
Expected | 1067.00 | 917.00 | 762.00 | 735.00 | 551.00 | 709.00 | 792.00 | 830.00 | 670.00 | 292.00 | 744.00 | 943.00 | 947.00 | 945.00 | 774.00 | |
O - E | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
(O - E)² / E | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
Row 2 | Observed | 976 | 839 | 697 | 672 | 504 | 648 | 724 | 759 | 613 | 267 | 680 | 862 | 866 | 864 | 708 |
Expected | 975.66 | 838.50 | 696.77 | 672.08 | 503.83 | 648.31 | 724.20 | 758.95 | 612.65 | 267.00 | 680.31 | 862.28 | 865.94 | 864.11 | 707.75 | |
O - E | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
(O - E)² / E | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
Total | Observed | 2043 | 1756 | 1459 | 1407 | 1055 | 1357 | 1516 | 1589 | 1283 | 559 | 1424 | 1805 | 1813 | 1809 | 1482 |
Expected | 2042.66 | 1755.50 | 1458.77 | 1407.08 | 1054.83 | 1357.31 | 1516.20 | 1588.95 | 1282.65 | 559.00 | 1424.31 | 1805.28 | 1812.94 | 1809.11 | 1481.75 | |
O - E | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
(O - E)² / E | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
.00 | chi-square | |||||||||||||||
129 | df | |||||||||||||||
1.0000 | p-value |
Decision:
Since Chi-square test statistic is less than the critical value, we fail to reject the null hypothesis.
Conclusion:
There is sufficient evidence to accept the null hypothesis and to conclude that the colours sell in equal amounts is true.