Question

1. You have been asked to study whether there is a statistical relationship between the region of the country and the categorical number of stores that have experienced at least a 20% return rate of the item you are studying. Sample data concerning these two variables is given in appendix three. At both the 5% and 2% levels of significance, is there evidence of a relationship between the region of the country and the categorical number of stores that have experienced at least a 20% rate of return of the item?

Appendix Three:

                                                                   Region

Number of Stores                One       Two      Three        Four      

<25                           18          21        13            28

[25-50)                       11        20        19            24

[50-75)                       15          17        22            18

        

[75-100)                         9            7          8            10

≥100                            6            5          6                7               

Answer 1

df= 4*3 = 12

p-value = =CHISQ.DIST.RT(7.504,12)

= 0.8226

since p-value > 0.02 as well as 0.05

we fail to reject the null hypothesis at both the 5% and 2% levels of significance,

there is not sufficient evidence of a relationship between the region of the country and the categorical number of stores that have experienced at least a 20% rate of return of the item