Question

In: Statistics and Probability

A study of the relationship between facility conditions at gas stations and aggressiveness in the pricing...

A study of the relationship between facility conditions at gas stations and aggressiveness in the pricing of gasoline reports the accompanying data based on a sample of n = 385 stations.

Table of Observed counts

                                        Observed pricing policy

                                                 Aggressive       Neutral     Nonaggressive

                        Condition        Standard             52               73                   80

                                                Modern              58              86                  36

a. What is the expected cell count table under the null hypothesis that the facility conditions and the aggressiveness of the pricing are independent?

b. Carry out a chi-square test for the independence. What is the value of test statistic?

c. What is the reject region for the significance level 0.01? Does the data suggest that facility conditions and pricing policy are independent of one another?

Solutions

Expert Solution


Related Solutions

Gasoline is sold through local gas stations under perfectly competitive conditions. All gas station owners face...
Gasoline is sold through local gas stations under perfectly competitive conditions. All gas station owners face the same long-run total cost function given by: LRTC= 0.01q3-2q2+101q                                     Where q is the number of gallons sold per day. Assuming the market is in long-run equilibrium, how much gas will each firm sell per day? What is the value of long- run average cost at this output level? What is the long run equilibrium price?                 (b) The market demand...
4. In a fictional study, the influence of a television program on children's aggressiveness was examined....
4. In a fictional study, the influence of a television program on children's aggressiveness was examined. The number of aggressive responses was measured during an observation period after the children viewed the television program. Imagine that the known national average for number of aggressive responses typically performed by children who do not watch television is 6.647. a) Perform the six steps of hypothesis testing using the data in the table and a two-tailed t test at an α level .05....
Question 5 LGP sells bottled gas to petrol stations for resale. The petrol stations buy the...
Question 5 LGP sells bottled gas to petrol stations for resale. The petrol stations buy the bottles in lots of 500 for $15000. LPG’s variable costs per bottle are $25. Monthly fixed costs are $102,000. Required 1.       Calculate the breakeven point in sales revenue and units (gas bottles). 2.       Calculate the volume required to earn $300,000. 3.       How does your analysis change if you learn that LPG uses sales agents who are paid a commission of $0.50 per gas bottle sold? Question 6...
Explain the relationship between the chain and transmission of infection and the conditions that promote the...
Explain the relationship between the chain and transmission of infection and the conditions that promote the transmission of the healthcare associated infections.
The owner of a number of gas stations is considering installing coffee machines in his gas...
The owner of a number of gas stations is considering installing coffee machines in his gas stations. It will cost $250,000 to install the coffee​ machines, and they are expected to boost cash flows by $116,071 per year for their​ five-year working life. What must the cost of capital be if this investment has a profitability index of​ 1?
The owner of a number of gas stations is considering installing coffee machines in his gas...
The owner of a number of gas stations is considering installing coffee machines in his gas stations. It will cost $290,000 to install the coffee machines, and they are expected to boost cash flows by $134,643 per year for their five-year working life. What must the cost of capital be if this investment has a profitability index of 1 1. 10.37% 2. 12.96% 3. 2.59% 4. 5.81%
Suppose in December 2019, the average and standard deviation of gas price at gas stations were...
Suppose in December 2019, the average and standard deviation of gas price at gas stations were 136.5 and 6 ¢/liter respectively. A random sample of n = 36 gas stations is selected from the population and the price per liter of gas is determined for each. a) Describe the distribution of the average gas price determined for this sample gas stations. What are the values of mean and standard deviation for this distribution? b) What is the probability that the...
1a.) Explain the relationship between the chain and transmission of infection and the conditions that promote...
1a.) Explain the relationship between the chain and transmission of infection and the conditions that promote the transmission of healthcare associated infections. 1b.) Explain the rationale for standard precautions and the procedures for each isolation category.
Is there a relationship between perceptions of current economic conditions and extent of a democracy? Using...
Is there a relationship between perceptions of current economic conditions and extent of a democracy? Using Afrobarometer 2015, please provide: a 1–2 APA style paragraph statement that furnishes an answer to this question, note the relevant statistics, comment on meaningfulness, and include your relevant SPSS output. In addition, please comment on what could be influencing the results you obtained.
Is there a relationship between perceptions of current economic conditions and extent of a democracy? Using...
Is there a relationship between perceptions of current economic conditions and extent of a democracy? Using Afrobarometer 2015, please provide: a 1–2 APA style paragraph statement that furnishes an answer to this question, note the relevant statistics, comment on meaningfulness, and include your relevant SPSS output. In addition, please comment on what could be influencing the results you obtained.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT