In: Statistics and Probability
H0 : Both process are operating at the same quality level.
Ha : Processes are not operating at same quality level.
Here the observed table is
Defective | Good | Total | |
Process A | 10 | 30 | 40 |
Process B | 25 | 35 | 60 |
Total | 35 | 65 | 100 |
So, here
expected observed value of Process A and defective = 35 * 40/100 = 14
expected observed value of Process A and Good = 65 * 40/100 = 26
expected observed value of Process B and defective = 35 * 60/100 = 21
expected observed value of Process B and Good = 65 * 60/100 = 39
Expected table
Defective | Good | Total | |
Process A | 14 | 26 | 40 |
Process B | 21 | 39 | 60 |
Total | 35 | 65 | 100 |
Here chi-square value
= (10 - 14)2/14 + (30 - 26)2/26 + (25 - 21)2/21 + (35 - 39)2/39 = 2.9304
so here degree of freedom = dF = 1
P - value = CHIDIST(2.9304, 1) = 0.0869 > 0.05
so we would fail to reject the null hypothesis and conclude that Both process are operating at the same quality level.