Question

1. Clearly state the null and alternative hypotheses

2. Sketch a graph of the rejection region labeled with the critical value(s)

3. Calculate the test statistic (showing all work to earn any credit) and p-value (give a

   range of values for t, chi-square, and F distributions)

4. Write conclusion (3 sentences)

Questionnaires were sent to all members of the senior class in a College of Business Administration at a reputable University. One question asked which major within the business program the student had chosen. The second question asked whether the student paid In State or Out-of-State tuition rates. The data is summarized below:

The observed number of students who responded are the following:

5.

	Accounting	Administration	Economics	Total
In State Tuition Rate	58	70	8	136
Out of State Tuition Rate	49	55	7	111
Total	107	125	15	247

The expected number of responses were tabulated as the following:

	Accounting	Administration	Economics	Total
In State Tuition Rate	58.91	68.83	8.26	136
Out of State Tuition Rate	48.09	56.17	6.74	111
Total	107	125	15	247

Conduct a χ2 test of independence at α = .01 to determine if the tuition rate of students is independent of their choice of major.

Answer 1

Solution

Step-1:State the hypothesis

Ho: The tuition rate of students is independent of their choice of major.

H1:The tuition rate of students is dependent of their choice of major.

Sketch a graph of the rejection region labeled with the critical value

Conclusion:

The tuition rate of students is independent of their choice of major.