Question

Conduct the hypothesis test and provide the test? statistic, critical value and? P-value, and state the conclusion. A person randomly selected 100100 checks and recorded the cents portions of those checks. The table below lists those cents portions categorized according to the indicated values. Use a 0.100.10 significance level to test the claim that the four categories are equally likely. The person expected that many checks for whole dollar amounts would result in a disproportionately high frequency for the first? category, but do the results support that? expectation? Cents portion of check ?0-24 ?25-49 ?50-74 ?75-99 Number 35 24 22 19

Answer 1

Solution:

The hypotheses under consideration is:

There is no significant difference between the four categories.

There is a significant difference between the four categories.

Under null hypothesis the test statistic is given:

Where is the observed frequencies

is the expected frequencies

Therefore the test statistic is

Critical value at 0.10 significance level for is

Therefore the critical value

state the conclusion.

Answer: Since the statistic is less than the , therefore we fail to reject the null hypothesis and there is enough evidence to support the claim that the four categories are equally likely.