One of largest banks in the country is researching the payment method used by re
ID: 3306104 • Letter: O
Question
One of largest banks in the country is researching the payment method used by restaurant customers. The interest is to know if customers have changed their method of payment with respect to last year. As the statistician in charge of the analysis you survey 220 restaurants and find historical information on payment method as shown in the table below. Allow 1% of error when performing the statistical test. 16 Market Share 0.50 0.20 0.05 2017-0bserv Credit card Debit card Personal check 100 45 10 Total 132; 50: 20:40 110; 50; 20: 40 28Explanation / Answer
Answer:
a). Expected values : 110,44,11,55
b).
Goodness of Fit Test
observed
expected
O - E
(O - E)² / E
100
110.000
-10.000
0.909
45
44.000
1.000
0.023
10
11.000
-1.000
0.091
65
55.000
10.000
1.818
Total
220
220.000
0.000
2.841
2.841
chi-square
3
df
Test statistic : 2.8
c). degrees of freedom = 3
d). critical value =11.345
e). method of payment is changed.
f). Accept Ho.
g). there is no evidence to conclude that customers have changed their method of payment with respect to last year.
Goodness of Fit Test
observed
expected
O - E
(O - E)² / E
100
110.000
-10.000
0.909
45
44.000
1.000
0.023
10
11.000
-1.000
0.091
65
55.000
10.000
1.818
Total
220
220.000
0.000
2.841
2.841
chi-square
3
df
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