Westminster Financial has released a summary of investment package information f

Question

Westminster Financial has released a summary of investment package information from the past fiscal year. During this time, Westminster provided a choice among twelve pre-designed investment packages. Westminster classified the packages into three categories according to riskiness: risky, moderate/mixed, and conservative. We're interested in the possible relationship between the age of an investor and the riskiness of the investment package she chose. Table 1, a contingency table, gives a summary of the information released by Westminster regarding age and riskiness of investment package for a random sample of 150 investors. Each cell of the table contains three numbers: the first number is the observed cell frequency fo); the second number is the expected cell frequency ?E) under the assumption that there is no relationship between the two variables riskiness of investment choice and age of Westminster investor for this past year; and the third number is the value (fo-fs)(observed cell frequency - Expected cel frequency)2 The numbers labeled "Total" are totals for observed frequency. O JE Fill in the missing values of Table 1. Round your expected frequencies to at least two decimal places, and round your values to at least three decimal places. Then, using the 0.10 level of significance, perform a test of the hypothesis that there is no relationship between the two variables riskiness of investment choice and age of Westminster investor for this past year. Complete Table 2 based on your test.

Explanation / Answer

a) the value of the test statistics will be 0.334.

b) the critical value for the test at 0.10 los is = 14.68

c) as the calculated value is less than the projected value we should accept the null hypothesis.

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