In: Statistics and Probability
22. Claim: The number of car accidents is the same in Utah, Arizona and Colorado
Data: 900 crashes are chosen at random. The results are tabulated below.
? Is this evidence to refute the claim at the level of significance α = 0.05?
State Count
Utah 398
Arizona 213
Colorado 289
Total 300
Solution:
Here, we have to use chi square test for goodness of fit.
Null hypothesis: H0: The number of car accidents is the same in Utah, Arizona and Colorado.
Alternative hypothesis: Ha: The number of car accidents is not same in Utah, Arizona and Colorado.
We assume/given level of significance = α = 0.05
Test statistic formula is given as below:
Chi square = ∑[(O – E)^2/E]
Where, O is observed frequencies and E is expected frequencies.
We are given
N = 3
Degrees of freedom = df = N - 1 = 3 - 1 = 2
α = 0.05
Critical value = 5.991465
(by using Chi square table or excel)
Calculation tables for test statistic are given as below:
State |
O |
E |
(O - E)^2/E |
Utah |
398 |
300 |
32.01333333 |
Arizona |
213 |
300 |
25.23 |
Colorado |
289 |
300 |
0.403333333 |
Total |
900 |
900 |
57.64666667 |
Test Statistic = Chi square = ∑[(O – E)^2/E] = 57.64666667
χ2 statistic = 57.64666667
P-value = 0.0000
(By using Chi square table or excel)
P-value < α = 0.05
So, we reject the null hypothesis
There is not sufficient evidence to conclude that the number of car accidents is the same in Utah, Arizona and Colorado.
Is this evidence to refute the claim at the level of significance α = 0.05?
Answer: Yes