A person randomly selected 100 checks and recorded the cents portions of those c

Question

A person randomly selected 100 checks and recorded the cents portions of those checks. The table below lists those cents portions categorized according to the indicated values. Use a 0.025 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? Find the test statistic Find the critical value Cenis porion ofcheck 0-2425-49)50-H 75-99 number

Explanation / Answer

null hypothesis:Ho:all four categories are equally likely

alternate hypothesis:Ha:at least one category has different likelihood then others,

degree of freedom =categories-1=4-1=3

for 3 degree of freedom and 0.025 level critical value =9.348

applying chi square goodness of fit test:

test statistic =5.360

as test statistic is les than critical value we can not reject null hypothesis.

observed Expected Chi square category Probability(p) Oi Ei=total*p R2i=(Oi-Ei)2/Ei 0-24 0.250 34.000 25.000 3.240 25-49 0.250 21.000 25.000 0.640 50-74 0.250 26.000 25.000 0.040 75-99 0.250 19.000 25.000 1.440 total 1.000 100 100 5.360

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