In: Statistics and Probability
. Twin Peaks Lingerie, Incorporated, wants to introduce a new bustier, to be marketed under the Lady Gagatm logo. They have tested four sizes of bustier, from tiny to “almost-not-there.” A sample of 200 teenaged boys each stated their preference, as indicated in the table below. Is there a preferred size at the 0.05 level?
| 
 Size (in order)  | 
 Number Preferring  | 
| 
 Tiny  | 
 10  | 
| 
 Teeny-tiny  | 
 26  | 
| 
 Teeny-weeny-tiny  | 
 64  | 
| 
 Almost not there  | 
 100  | 
State Hypotheses:
Show work:
What is the value of the test statistic?
What is the value of the standard?
What is the result of the test?
Ho: Order Size is independent(no prefered)  
H1:Order Size is not independent(prefered)  
| observed frequencey, O | expected proportion | expected frequency,E | (O-E)²/E | ||
| 10 | 0.250 | 50.00 | 32.000 | ||
| 26 | 0.250 | 50.00 | 11.520 | ||
| 64 | 0.250 | 50.00 | 3.920 | ||
| 100 | 0.250 | 50.00 | 50.000 | 
chi square test statistic,X² = Σ(O-E)²/E =  
97.440          
   
          
       
level of significance, α=   0.05  
           
Degree of freedom=k-1=   4   -  
1   =   3
          
       
       
          
       
          
       
Critical value =    7.8147   [ Excel
function: =chisq.inv.rt(α,df) ]     
  
P value =   0.0000   [ excel function:
=chisq.dist.rt(test-stat,df) ]      
   
Decision: P value < α, Reject Ho      
   
Hence there is a preferred size at the 0.05 level.
Please revert back in case of any doubt.
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