Question

In: Statistics and Probability

An international travel company wanted to see if the US and Canadian citizens have different holiday...

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.

Solutions

Expert Solution

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.


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