Business Statistics A First Course 7th Edition Levine Solutions Manual Download

424 Chapter 11: Chi-Square Tests
Solutions to End-of-Section and Chapter Review Problems 424
Business Statistics A First Course 7th

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CHAPTER 11
For df = 1 and α = 0.01, χ = 6.635.

2
11.1 (a)
For df = 1 and α = 0.005, χ = 7.879.
2
(b)
For df = 1 and α = 0.10, χ = 2.706.
2
(c)
For df = 1 and α = 0.05, χ = 3.841.

2
11.2 (a)
For df = 1 and α = 0.025, χ = 5.024.
2
(b)
For df = 1 and α = 0.01, χ = 6.635.
2
(c)
11.3 (a)-(b)
Observed Freq Expected Freq Observed Freq Expected Freq Total Obs, Row 1
20 20 30 30 50
chi-sq contrib= 0 chi-sq contrib= 0
30 30 45 45 75
chi-sq contrib= 0 chi-sqcontrib= 0
Total Obs, Col 1 Total Obs, Col 2 GRAND TOTAL
50 75 125
(f0 – f e ) 2
(c) χ2 = = 0 + 0 + 0 + 0 = 0. Since χ 2 < 3.841, it is not significant at
STAT STAT
All Cells fe
the 5% level of significance.
11.4 (a)
20 25 30 25 50
chi-sq contrib= 1.00 chi-sq contrib= 1.00
30 25 20 25 50
chi-sq contrib= 1.00 chi-sqcontrib= 1.00
Total Obs, Col 1 GRAND TOTAL
Copyright ©2016 Pearson Education, Inc.

50 Total Obs, Col 2 100

(b) Decision rule: If χ 2
> 3.841, reject H50
0.
(f0 – f e ) 2
Test statistic: χ 2 = = 1.00 + 1.00 + 1.00 + 1.00 = 4
STAT
All Cells fe
(f0 – f e ) 2
Decision: Since χ 2 = = 4 is greater than the critical value of 3.841, it is
STAT
All Cells fe
significant at the 5% level of significance.

11.5 (a)
Chi-Square Test
Observed Frequencies
Gender
Buy Clothing Male Female Total
Yes 195 305 500
No 305 195 500
Total 500 500 1000
Expected Frequencies
Gender
Buy Clothing Male Female Total
Yes 250 250 500
No 250 250 500
Total 500 500 1000
Data
Level of Significance 0.01
Number of Rows 2
Number of Columns 2
Degrees of Freedom 1
Results
Critical Value 6.634897
Chi-Square Test Statistic 48.4
p -Value 3.48E-12
Reject the null hypothesis
H0: π 1 = π 2 H1: π 1 ≠ π 2 where population: 1 = males, 2 = females
Decision rule: df = 1. If χ 2STAT > 6.6349, reject H0.
Test statistic: χ STAT = 48.4

2
Decision: Since χ 2 = 48.4 is larger than the upper critical bound of 6.6349, reject H0.
STAT
There is enough evidence to conclude that there is significant difference between the
proportions of males and females who buy clothing from their mobile devices at the 0.01
level of significance.
(b) p-value = 0.0000. The probability of obtaining a test statistic of 48.4 or larger when the
null hypothesis is true is virtually 0.

11.5 (c) (a) H0: π 1 = π 2 H1: π 1 ≠ π 2 where Populations: 1 = males, 2 = females

cont. Decision: Since χ 2
STAT = 5.01 8 is lower than the upper critical bound of
2
6.6349, do not reject H0. There is not enough evidence to conclude that the
proportion of males and females who buy clothing from their mobile devices are
different.
(b) p-value = 0.0252. The probability of obtaining a test statistic of 5.0128 or larger
when the null hypothesis is true is 0.0252.
(d) The results of (a) – (c) are exactly the same as those of Problem 10.29. The χ STAT2
in (a)
and the Z STAT in Problem 10.29 (a) satisfy the relationship that χ STAT = 48.4 = (Z STAT )
2 2
= −6.9570 and the p-value obtained in (b) is exactly the same as the p-value in Problem
2
10.29 (b). Similarly, the χ STAT in (c) and the Z STAT in Problem 10.29 (d) satisfy the
2
relationship that χ STAT = 5.0128= (Z STAT ) = −2.2389 and the p-value obtained in (c) is
2 2 2
exactly the same as the p-value in Problem 10.29 (d).
11.6 PHStat output:

Chi-Square Test
Correctly Recall the Brand
Arrival Method Yes No Total
Recommendation 407 150 557
Browsing 193 91 284
Total 600 241 841
Correctly Recall the Brand
Arrival Method Yes No Total
Recommendation 397.3840666 159.6159334 557
Browsing 202.6159334 81.38406659 284
Total 600 241 841
Data
Number of Rows 2
Number of Columns 2
Results
p-Value 0.120984946
Donot reject the null hypothesis

(a) H0: π 1 = π 2 H1: π 1 ≠ π 2

11.6 (b)Decision rule: df = 1. If χ 2STAT > 3.8415 or p-value < 0.05, reject H0.
2
cont.
Decision: Since χ STAT = 2.4045 is less than the upper critical bound of 3.8415, do not
2
reject H0. There is not enough evidence a difference in brand recall between viewers who
arrived by following a social media recommendation and those who arrived by web
browsing.
(c) You should not compare the results in (a) to those of Problem 10.30 part (b) because
Problem 10.30 was a one-tail test.
11.7 (a) PHStat output:
Chi-Square Test
ObservedFrequencie
s GENDER
FELTTENSEORSTRESSEDOUTATWOR Male Female Total
K Yes 244 282 526
No 495 480 975
Total 739 762 1501
Expected Frequencie
s GENDER
FELTTENSE ORSTRESSEDOUTATWOR Male Female Total
K Yes 258.97 267.03 526
No 480.03 494.97 975
Total 739 762 1501
Data
Number of Rows 2
Number of Columns 2
Results
p-Value 0.105245
Do not reject the null hypothesis
H0: π 1 = π 2 H1: π 1 ≠ π 2
Test statistic: χ STAT

2
= 2.6242
Decision: Since χ 2 = 2.6242 < 3.841, do not reject H0. There is not enough evidence of a
STAT

difference between males and females in the proportion who feel stressed out at work.
(b) p-value = 0.1052. The probability of obtaining a test statistic of 2.6242 or larger when the
null hypothesis is true is 0.1052.

11.8 (a) H0: π 1 = π 2 H1: π 1 ≠ π 2
PHStat output with computation:

Chi-Square Test
ObservedFrequencies
Customers
Use Credit Card Superbanke Unbanked Total
Yes d 930 230 1160
No 70 770 840
Total 1000 1000 2000
Customers
Use Credit Card Superbanke Unbanked Total
Yes d 580 580 1160
No 420 420 840
Total 1000 1000 2000
Data
Number of Rows 2
Number of Columns 2
Results
Chi-Square 1
1005.74712
Test Statistic
p-Value 6
1.0117E-
220
Decision rule: df = 1. If χ STAT > 6.6349, reject H0.

2
2
(f0 – f e )
Test statistic: χ 2
= = 1005.7471
STAT
All Cells fe
Decision: Since χ 2
STAT = 1005.7471 is greater than the upper critical bound of 6.6349,
reject H0. There is enough evidence of a significant difference between the Superbanked and
the Unbanked with respect to the proportion that use credit cards.
(b) p-value is virtually 0. The probability of obtaining a difference in proportions that gives
rise to a test statistic above 1,005.7471 is 0.0000 if there is no difference in the proportion
of Superbanked and Unbanked who use credit cards..
(c) The results of (a) and (b) are exactly the same as those of Problem 10.32. The χ 2STAT in
(a) and the ZSTAT in Problem 10.32 (a) satisfy the relationship that χ 2STAT = 1005.7471=

2
(Z STAT )
2
= ( 31.7135 ) and the p-value in Problem 10.32 (b) is exactly the same as the p-
value obtained in (b).

11.9 (a) H0: π 1 = π 2 H1: π 1 ≠ π 2
Chi-Square Test
ObservedFrequencies
Variations
Downloads Original call to actionbutton Newcall to action button Total
Yes 351 485 836
No 3,291 3,071 6362
Total 3,642 3,556 7198
Variations
Downloads Original call to action button Newcall to action button Total
Yes 422.994165 413.005835 836
No 3219.005835 3142.994165 6362
Total 3642 3556 7198
Data
Number of Rows 2
Number of Columns 2
Results
p-Value 1.17452E-07

2
(f0 – f e )
= = 28.0626
STAT
All Cells fe
Decision: Since χ
2
STAT = 28.0626 > 3.841, reject H0. There is enough evidence of a
significant difference in the download rate between the original call to action button and the
new call to action button.
(b) p-value is virtually 0. The probability of obtaining a test statistic of 28.0626 or larger
when the null hypothesis is true is virtually 0.
(c) The results of (a) and (b) are exactly the same as those of Problem 10.31. The χ 2STAT in
(a) and the ZSTAT in Problem 10.31 (a) satisfy the relationship that χ 2STAT = 28.0626 =
(Z STAT )2 = (-5.2974)2 and the p-value in Problem 10.31 (b) is exactly the same as the p-

11.10 (a), (b) H0: π 1 = π 2 H1: π 1 ≠ π 2

Chi-Square Test
co-browsing
use skills-based routing Yes No Total
Yes 81 65 146
No 48 111 159
Total 129 176 305
co-browsing
use skills-based routing Yes No Total
Yes 61.75081967 84.24918 146
No 67.24918033 91.75082 159
Total 129 176 305
Data
Number of Rows 2
Number of Columns 2
Results
p -Value 7.96302E-06

2
(f0 – f e )
= = 19.9467
STAT
All Cells fe
STAT = 19.9467 > 3.841, reject H0. There is enough evidence of a a
difference between co-browsing organizations and non-co-browsing organizations in the

proportion that use skills-based routing to match the caller with the right agent.
(c) p-value is virtually zero. The probability of obtaining a test statistic of = 6.8978 or larger
when the null hypothesis is true is virtually zero.
(d) The results of (a) and (b) are exactly the same as those of Problem 10.34. The χ 2STAT in

(a) and the ZSTAT in Problem 10.34 (a) satisfy the relationship that χ
2
STAT = 19.9467 =
(Z STAT )2 = (4.4662)2 and the p-value in Problem 10.34 (b) is exactly the same as the p-

11.11 (a) df = (r – 1)(c – 1) = (2 – 1)(5 – 1) = 4

(b) χ 2 = 9.488
(c) χ 2 = 13.277
11.12 (a) The expected frequencies in the first row are 20, 30, and 40.
The expected frequencies in the second row are 30, 45, and 60.
(b) χ STAT
2
= 12.500. The critical value with 2 degrees of freedom and α = 0.05 is 5.991. The
result is deemed significant.
11.13 (a) The expected frequencies in the first row are 25, 25, and 25.
The expected frequencies in the second row are 25, 25, and 25.
(b) χ STAT
2
= 4.000. The critical value with 2 degrees of freedom and α = .05 is 5.991. The
result is not deemed significant.
11.14 PHStat output:

Chi-Square Test
Age Groups
Information Stolen 18 to 29 30 to 49 50 to 64 65+ Total
Yes 30 40 40 26 136
No 170 160 160 174 664
Total 200 200 200 200 800
Age Groups
Information Stolen 18 to 29 30 to 49 50 to 64 65+ Total
Yes 34 34 34 34 136
No 166 166 166 166 664
Total 200 200 200 200 800
Data
Number of Rows 2
Number of Columns 4
Results
p -Value 0.145603
Do not reject the null hypothesis

11.14 (a) H 0 : π1 = π 2 = π 3 = π 4 H1 : Not all π j are equal.

2
(f0 – f e )
cont. Test statistic: χ 2 = = 5.3863
STAT
All Cells fe
Decision: Since the calculated test statistic 5.3863 is smaller than the critical value of
7.8147, you do not reject H 0 and conclude that there is not enough evidence of a difference
among the age groups in the proportion of internet users who have had important personal
information stolen.
(b) p-value = 0.1456. The probability of obtaining a data set which gives rise to a test statistic
of 5.3863 or more is 0.1456 if there is no difference among the age groups in the preference
for lunch.
11.15 (a)
Chi-Square Test
Industries
CEOs are active champions Automotive Financial Health Retail Technology Total
Yes 400 350 410 295 380 1835
No 100 150 90 205 120 665
Total 500 500 500 500 500 2500
Industries
CEOs are active champions Automotive Financial Health Retail Technology Total
Yes 367 367 367 367 367 1835
No 133 133 133 133 133 665
Total 500 500 500 500 500 2500
Data
Number of Rows 2
Number of Columns 5
Results
p -Value 3.69492E-18
H 0 : π1 = π 2 = π 3 = π 4 = π 5 H1 : Not all π j are equal.

2
(f0 – f e )
Test statistic: χ 2 = = 87.8900
STAT

All Cells fe
Decision: Since the calculated test statistic 87.8900 is greater than the critical value of
9.4877, you reject H 0 and conclude that there is evidence of a difference among the
industries with respect to the proportion of executives that say their CEOs are active
champions of using digital technology to achieve strategy.

11.15 (b) p-value is virtually 0. The probability of obtaining a data set which gives rise to a test
cont. statistic of 87.8900 or more is virtually zero if there is no difference among the industries
with respect to the proportion of executives that say their CEOs are active champions of
using digital technology to achieve strategy.
11.16 (a) H 0 : π1 = π 2 = π 3 H1 : at least one proportion differs

PHStat output:
Chi-Square Test
Company Size
Have Already Deployed Small Mid Large Total
Yes 18 74 52 144
No 182 126 148 456
Total 200 200 200 600
Company Size
Yes 48 48 48 144
No 152 152 152 456
Total 200 200 200 600
Data
Number of Rows 2
Number of Columns 3
Results
p -Value 3.34E-10
Decision rule: If χ STAT

2
> 5.9915 reject H0.
2
(f0 – f e )
= = 43.6404
STAT
All Cells fe
STAT = 43.6404 is greater than the upper critical bound of 5.9915, reject

H0. There is enough evidence of a difference among companies of different sizes with
respect to the proportion of companies that have already deployed Big Data projects.
(b) p-value = 0.0000. The probability of obtaining a sample that gives rise to a test statistic that
is equal to or more than 43.6404 is 0.0000 if there is no difference among the groups with

11.17 (a) H 0 : π1 = π 2 = π 3 H1 : at least one proportion differs

PHStat output:
Chi-Square Test
Company Size
Yes 4.5 18.5 13 36
No 45.5 31.5 37 114
Total 50 50 50 150
Company Size
Yes 12 12 12 36
No 38 38 38 114
Total 50 50 50 150
Data
Number of Rows 2
Number of Columns 3
Results
p -Value 0.004275

2
> 5.9915, reject H0.

2
Decision: Since χ
2
= 10.9101 is greater than the upper critical bound of 5.9915, reject
STAT
H0. There is enough evidence of a difference among companies of different sizes with
(b) p-value = 0.0043. The probability of obtaining a sample that gives rise to a test statistic that
is equal to or more than 10.9101 is 0.0043 if there is no difference among the groups with
The larger the sample size, the more power the χ 2 test has and, hence, there is a higher
likelihood of rejecting a false null hypothesis.


Chi-Square Test
Number of Employees
Working with Multiple Vendor 50 - 99 100 - 499 500 - 999 1,000 - 5,000 Total
Yes 19 44 43 61 167
No 38 49 26 20 133
Total 57 93 69 81 300
Number of Employees
Working with Multiple Vendor 50 - 99 100 - 499 500 - 999 1,000 - 5,000 Total
Yes 31.73 51.77 38.41 45.09 167
No 25.27 41.23 30.59 35.91 133
Total 57 93 69 81 300
Data
Number of Rows 2
Number of Columns 4
Results
p -Value 3.54E-06
Ho: π 1 = π 2 = π 3 = π 4 H1 Not all are equal.

2
(f0 – f e )
STAT
All Cells fe
7.8147, you reject H 0 and conclude that there is evidence of a significant difference among
companies of different sizes with respect to the proportion that are working simultaneously
with five or more vendors.
of 28.0506 or more is virtually 0 if there is no difference among companies of different sizes
with respect to the proportion that are working simultaneously with five or more vendors.

11.19 (a) PHStat output:
Chi-Square Test
Countries
Have At Least One Female Director French Australian Norwegian Singaporean Canadian Total
Yes 68 148 28 31 96 371
No 33 64 2 27 49 175
Total 101 212 30 58 145 546
Countries
Have At Least One Female Director French Australian Norwegian Singaporean Canadian Total
Yes 68.62821 144.0513 20.384615 39.4102564 98.52564 371
No 32.37179 67.94872 9.6153846 18.5897436 46.47436 175
Total 101 212 30 58 145 546
Data
Number of Rows 2
Number of Columns 5
Results
p -Value 0.004632
(a) Ho: π 1 = π 2 = π 3 = π 4 = π 5 H1 Not all are equal.

2
(f0 – f e )
STAT
All Cells fe
9.4877, you reject H 0 and conclude that there is evidence of a significant difference among
the countries with respect to the proportion of companies that have at least one female
director on their boards.
of 15.0337 or more is 0.0046 if there is no significant difference among the countries with
respect to the proportion of companies that have at least one female director on their boards.

11.20 df = (r – 1)(c – 1) = (3 – 1)(4 – 1) = 6
11.21 (a) χ 2 = 21.026 (d) χ = 23.209

2
(b) χ 2 = 26.217 (e) χ = 23.209

2
(c) χ 2 = 30.578
11.22 H0: There is no relationship between type of dessert and type of entrée.
H1: There is a relationship between type of dessert and type of entrée.
(f0 – f e ) 2
STAT
All Cells fe
Decision: Since the calculated test statistic 92.1028 is larger than the critical value of
16.9190, you reject H 0 and conclude that there is enough evidence of a relationship
between type of dessert and type of entrée.


Chi-Square Test
ObservedFrequencie
s AGE
FAVORITETYPE 16-29 30-49 50-64 65 andove Total
Rock 71 62 51 27 211
RaporHip-hop 40 21 7 3 71
Rhythmandblues 48 46 46 40 180
Country 43 53 59 79 234
Classical 22 28 33 46 129
Jazz 18 26 36 43 123
Salsa 8 14 18 12 52
Total 250 250 250 250 1000
Expected Frequencie
s AGE
FAVORITE TYPE 16-29 30-49 50-64 65and ov Total
Rock 52.75 52.75 52.75e 52.75 211
Rap or Hip- 17.75 17.75 17.75 17.75 71
hop
Rhythmand blue 45 45 45 45 180
s Country 58.5 58.5 58.5 58.5 234
Classical 32.25 32.25 32.25 32.25 129
Jazz 30.75 30.75 30.75 30.75 123
Salsa 13 13 13 13 52
Total 250 250 250 250 1000
Data
Number of Rows 7
Number of Columns 4
Results
Chi-Square 105.9239
Test Statistic
p-Value 1.8E-14
H0: There is no relationship between favorite type of music and age group.
H1: There is a relationship between favorite type of music and age group.
(f0 – f e ) 2
= = 105.9239
STAT
All Cells fe
Since χ 2
STAT = 105.9239 is greater than the critical bound of 28.8693, reject H0. There is enough
evidence to conclude there is a relationship between favorite type of music and age group.

11.24 H0: There is no relationship between frequency of the number of loyalty programs and age.
H1: There is a relationship between frequency of the number of loyalty programs and age.
PHStat output:
Chi-Square Test
Observed
Frequencies Age
Number of Royalty 18-22 23-29 30-39 40-49 50-59 60+ Total
Program 0 78 113 79 74 88 88 520
1 36 50 41 48 69 82 326
2-3 12 34 36 48 52 85 267
4-5 4 4 6 7 13 25 59
6+ 0 0 3 0 2 3 8
Total 130 201 165 177 224 283 1180
Expected
Frequencies Age
Number of Royalty Program 18-22 23-29 30-39 40-49 50-59 60+ Total
0 57.28814 88.57627 72.71186 78 98.71186 124.7119 520
1 35.91525 55.53051 45.58475 48.9 61.88475 78.18475 326
2-3 29.41525 45.48051 37.33475 40.05 50.68475 64.03475 267
4-5 6.5 10.05 8.25 8.85 11.2 14.15 59
6+ 0.881356 1.362712 1.118644 1.2 1.518644 1.918644 8
Total 130 201 165 177 224 283 1180
Data
Number of Rows 5
Number of Columns 6
Results
p -Value 7.67E-08

2
> 37.5662, reject H0.
2
(f0 – f e )
= = 72.2897
STAT
All Cells fe
Decision: Since χ
2
STAT = 72.2897 > 37.5662, reject H0. There is enough evidence to conclude there

is a relationship between number of airline loyalty programs and age.

11.25 H0: There is no relationship between the age group and where people primarily get their
news.
H1: There is a relationship between the age group and where people primarily get their
news.
Excel output:
Age Group
Media Under 36 36-50 50+ Total
Local TV 107 119 133 359
National TV 73 102 127 302
Radio 75 97 109 281
Local Newspaper 52 79 107 238
Internet 95 83 76 254
Total 402 480 552 1434
Age Group
Media Under 36 36-50 50+ Total
Local TV 100.64 120.17 138.19 359
National TV 84.66 101.09 116.25 302
Radio 78.77 94.06 108.17 281
Local Newspaper 66.72 79.67 91.62 238
Internet 71.21 85.02 97.77 254
Total 402 480 552 1434
Data
Number of Rows 5
Number of Columns 3
Results
p-Value 0.004591
Reject the null
hypothesis

2
> 15.5073, reject H0.

2
= 22.1812
Decision: Since χ 2 = 22.1812 is greater than the critical bound of 15.5073, reject H .
STAT 0
There is evidence of a significant relationship between the age group and where people
primarily get their news. The “50+” group has a lower than expected frequency of getting
their news through the Internet while the “under 36” group has a higher than expected
frequency of getting their news through the Internet.

11.26 H0: There is no relationship between identified main opportunity and geographic region.
H1: There is a relationship between identified main opportunity and geographic region.
Chi-Square Test
Geographic Region
Identified Main Opportunity U.S. China & HK Japan Germany Total
Product or service innovation 58 58 45 21 182
sed share in existing markets 60 30 31 15 136
Mergers and acquisition 23 10 12 4 49
New geographic markets 16 18 31 2 67
New joint ventures 5 18 8 3 34
Total 162 134 127 45 468
Geographic Region
Identified Main Opportunity U.S. China & HK Japan Germany Total
Product or service innovation 63 52.111111 49.38889 17.5 182
sed share in existing markets 47.07692 38.940171 36.90598 13.07692 136
Mergers and acquisition 16.96154 14.029915 13.29701 4.711538 49
New geographic markets 23.19231 19.183761 18.18162 6.442308 67
New joint ventures 11.76923 9.7350427 9.226496 3.269231 34
Total 162 134 127 45 468
Data
Number of Rows 5
Number of Columns 4
Results
p -Value 0.000152
Decision rule: d.f. = 12. If χ 2STAT > 21.0261 or p-value < 0.05, reject H0.

2
= 38.0210
Decision: Since the χ STAT

2
= 38.0210 is larger than the critical bound of 21.0261, reject H0. There
is enough evidence of a significant relationship between identified main opportunity and
geographic region.

11.27 The Chi-square test for the difference between two proportions can be used only when the
alternative hypothesis is two-tailed.

11.28 The Chi-square test can be used for c populations as long as all expected frequencies are at least
one.
11.29 The Chi-square test for independence can be used as long as all expected frequencies are at least
one.
11.30 (a) H0: There is no relationship between a student's gender and his/her pizzeria selection.
H1: There is a relationship between a student's gender and his/her pizzeria STAT
selection.
Decision rule: d.f. = 1. If χ STAT > 3.841, reject H0.
2
= 0.412
Decision: Since the χ STAT = 0.412 is smaller than the critical bound of 3.841, do not
2
reject H0. There is not enough evidence to conclude that there is a relationship between a
student's gender and his/her pizzeria selection.
(b) Test statistic: χ STAT
2
= 2.624
Decision: Since the χ STAT

2
= 2.624 is less than the critical bound of 3.841, do not reject
H0. There is not enough evidence to conclude that there is a relationship between a
student's gender and his/her pizzeria selection.
(c) H0: There is no relationship between price and pizzeria selection.
H1: There is a relationship between price and pizzeria selection.
Decision rule: d.f. = 2. If χ 2STAT > 5.991, reject H0. Test statistic: χ STAT
2
= 4.956
Decision: Since the χ STAT = 4.956 is smaller than the critical bound of 5.991, do not
2
reject H0. There is not enough evidence to conclude that there is a relationship between
price and pizzeria selection.
(d) p-value = 0.0839. The probability of obtaining a sample that gives a test statistic equal to
or greater than 4.956 is 0.0839 if the null hypothesis of no relationship between price and
pizzeria selection is true.

11.31 Facebook
Ho: π 1 = π 2 H1 Not all are equal where population 1 = B2B, 2 = B2C
Chi-Square Test
Business Focus
Social Media Tool B2B B2C Total
Yes 445 485 930
No 55 15 70
Total 500 500 1000
Business Focus
Yes 465 465 930
No 35 35 70
Total 500 500 1000
Data
Number of Rows 2
Number of Columns 2
Results
p -Value 7.14E-07
2
(f0 – f e )
STAT
All Cells fe
3.8415, you reject H 0 and conclude that there is a difference between B2B marketers and
B2C marketers in the proportion who used Facebook.

11.31 Twitter
cont. Ho: π 1 = π 2 H1 Not all are equal.
Chi-Square Test
Business Focus
Yes 430 405 835
No 70 95 165
Total 500 500 1000
Business Focus
Yes 417.5 417.5 835
No 82.5 82.5 165
Total 500 500 1000
Data
Number of Rows 2
Number of Columns 2
Results
p -Value 0.033182
2
(f0 – f e )
STAT
All Cells fe
Decision: Since the calculated test statistic 4.5364 is greater than the critical value of 3.8415,
you reject H 0 and conclude that there is enough evidence of a difference between B2B
marketers and B2C marketers in the proportion who used Twitter.

11.31 LinkedIn
Chi-Square Test
Business Focus
Yes 440 295 735
No 60 205 265
Total 500 500 1000
Business Focus
Yes 367.5 367.5 735
No 132.5 132.5 265
Total 500 500 1000
Data
Number of Rows 2
Number of Columns 2
Results
p -Value 2.76E-25
(f0 – f e )
Test statistic: χ 2 = 2 = 107.9451
STAT
All Cells fe
3.8415, you reject H 0 and conclude that there is a difference between B2B marketers and
B2C marketers in the proportion who use LinkedIn
.

11.31 YouTube
Chi-Square Test
Business Focus
Yes 260 300 560
No 240 200 440
Total 500 500 1000
Business Focus
Yes 280 280 560
No 220 220 440
Total 500 500 1000
Data
Number of Rows 2
Number of Columns 2
Results
p -Value 0.010827
2
(f0 – f e )
STAT
All Cells fe
Decision: Since the calculated test statistic 6.4935 is greater than the critical value of 3.8415,
you reject H 0 and conclude that there is enough evidence of a difference between B2B
marketers and B2C marketers in the proportion who used YouTube.

11.32 (a) H0: There is no relationship between the attitudes of employees toward the use of self-
managed work teams and employee job classification.
H1: There is a relationship between the attitudes of employees toward the use of self-
managed work teams and employee job classification.
2
> 12.592, reject H0.

2
= 11.895
Decision: Since χ 2 = 11.895 is less than the critical bound 12.592, do not
STAT
the attitudes of employees toward the use of self-managed work teams and employee job
classification.
(b) H0: There is no relationship between the attitudes of employees toward vacation time
without pay and employee job classification.
H1: There is a relationship between the attitudes of employees toward vacation time
without pay and employee job classification.
2
> 12.592, reject H0.

2
= 3.294
Decision: Since χ 2 = 3.294 is less than the critical bound 12.592, do not
STAT
the attitudes of employees toward vacation time without pay and employee job
classification.

11.33 (a) H0: π 1 = π 2 = π 3 = π 4 H1: Not all π j are the same

PHStat output:
Chi-Square Test
Geographic Region
Honest? Northeast Midwest South West Total
Yes 102 118 220 115 555
No 74 93 135 130 432
Total 176 211 355 245 987
Geographic Region
Honest? Northeast Midwest South West Total
Yes 98.96657 118.6474 199.6201 137.766 555
No 77.03343 92.35258 155.3799 107.234 432
Total 176 211 355 245 987
Data
Number of Rows 2
Number of Columns 4
Results
p -Value 0.003554

2
> 7.8147, reject H0.

2
= 13.5696
Decision: Since χ 2 = 13.5696 is greater than the critical bound 7.8147, reject H0. There
STAT
is enough evidence of a difference in the proportion of Americans who say advertisements
are honest on the basis of geographic region.

11.33 (b) PHStat output:

cont.
Chi-Square Test
Geographic Region
Trust? Northeast Midwest South West Total
Yes 88 108 202 93 491
No 88 103 153 152 496
Total 176 211 355 245 987
Geographic Region
Trust? Northeast Midwest South West Total
Yes 87.5542 104.9656 176.6008 121.8794 491
No 88.4458 106.0344 178.3992 123.1206 496
Total 176 211 355 245 987
Data
Number of Rows 2
Number of Columns 4
Results
p -Value 0.000102
H0: π 1 = π 2 = π 3 H1: Not all π j are the same.

2
> 7.8147, reject H0.

2
Decision: Since χ 2 = 21.0652 is greater than the critical bound 7.8147, reject H0.
STAT
There is enough evidence of a difference in the proportion of Americans who say they
trust advertisements on the basis of geographic region.

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424 Chapter 11: Chi-Square Tests

Solutions to End-of-Section and Chapter Review Problems 424

Business Statistics A First Course 7th

For df = 1 and α = 0.01, χ = 6.635.

For df = 1 and α = 0.05, χ = 3.841.

Copyright ©2016 Pearson Education, Inc.

50 Total Obs, Col 2 100

Copyright ©2016 Pearson Education, Inc.

H0: π 1 = π 2 H1: π 1 ≠ π 2 where population: 1 = males, 2 = females

Decision rule: df = 1. If χ 2STAT > 6.6349, reject H0.

Test statistic: χ STAT = 48.4

Copyright ©2016 Pearson Education, Inc.

11.5 (c) (a) H0: π 1 = π 2 H1: π 1 ≠ π 2 where Populations: 1 = males, 2 = females

exactly the same as the p-value in Problem 10.29 (d).

11.6 PHStat output:

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(a) H0: π 1 = π 2 H1: π 1 ≠ π 2

Copyright ©2016 Pearson Education, Inc.

11.7 (a) PHStat output:

Decision rule: df = 1. If χ 2STAT > 3.841, reject H0.

Test statistic: χ STAT

Copyright ©2016 Pearson Education, Inc.

Copyright ©2016 Pearson Education, Inc.

11.8 (a) H0: π 1 = π 2 H1: π 1 ≠ π 2

PHStat output with computation:

Decision rule: df = 1. If χ STAT > 6.6349, reject H0.

Copyright ©2016 Pearson Education, Inc.

value obtained in (b).

Copyright ©2016 Pearson Education, Inc.

11.9 (a) H0: π 1 = π 2 H1: π 1 ≠ π 2

PHStat output with computation:

Decision rule: df = 1. If χ 2STAT > 3.841, reject H0.

value obtained in (b).

Copyright ©2016 Pearson Education, Inc.

11.10 (a), (b) H0: π 1 = π 2 H1: π 1 ≠ π 2

PHStat output with computation:

Decision rule: df = 1. If χ 2STAT > 3.841, reject H0.

difference between co-browsing organizations and non-co-browsing organizations in the

Copyright ©2016 Pearson Education, Inc.

value obtained in (b).

Copyright ©2016 Pearson Education, Inc.

11.11 (a) df = (r – 1)(c – 1) = (2 – 1)(5 – 1) = 4

result is deemed significant.

result is not deemed significant.

11.14 PHStat output:

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11.14 (a) H 0 : π1 = π 2 = π 3 = π 4 H1 : Not all π j are equal.

H 0 : π1 = π 2 = π 3 = π 4 = π 5 H1 : Not all π j are equal.

Copyright ©2016 Pearson Education, Inc.

Copyright ©2016 Pearson Education, Inc.

11.16 (a) H 0 : π1 = π 2 = π 3 H1 : at least one proportion differs

Decision rule: If χ STAT

Copyright ©2016 Pearson Education, Inc.

Copyright ©2016 Pearson Education, Inc.

11.17 (a) H 0 : π1 = π 2 = π 3 H1 : at least one proportion differs

Decision rule: If χ STAT

Test statistic: χ STAT = 10.9101

Copyright ©2016 Pearson Education, Inc.

11.18 PHStat output:

Ho: π 1 = π 2 = π 3 = π 4 H1 Not all are equal.

Copyright ©2016 Pearson Education, Inc.

11.19 (a) PHStat output:

(a) Ho: π 1 = π 2 = π 3 = π 4 = π 5 H1 Not all are equal.