In: Statistics and Probability
An international travel company wanted to see if the US and Canadian citizens have different holiday preferences. They polled nationals and found:
Beach |
Cruise |
|
US |
209 |
280 |
Canada |
225 |
248 |
Use a chi-square test to test the hypothesis (Ha) that nationality and type of vacation is not independent. Please show all six steps.
Solve using Excel:
Level of significance = 0.05
Degrees of freedom: df = (Roqs-1)*(Columns-1) = (2-1)*(2-1) = 1
H0: Nationality and type of vacation is independent
Ha: Nationality and type of vacation is not independent
Test statistic = 2.26
Critical value (Using Excel function CHISQ.INV.RT(probability, df)) = CHISQ.INV.RT(0.05,1) = 3.84
Since test statistic is less than critical value, we do not reject the null hypothesis.
So, nationality and type of vacation is independent.