Chi-Squared Tests of Independence and Goodness-Of-Fit

An economist was interested in whether the public's approval of government economic policy depended on whether they were self-employed or a paid employee. A survey of randomly selected members of the public gave the results in the table.

Is type of employment related to economic policy preference?

ANSWER by completing the following questions.

The null and alternative hypotheses are:

Complete the Observed Frequency Table.

The total number of self-employed is ...

• 244

• 438

• 506

• 444

Tags

CCSS.8.SP.A.4

The total number of member's of the public surveyed is...

• 549

• 950

• 506

• 308

Tags

CCSS.6.SP.B.5A

Calculate the Expected Frequency Table.

If the null hypothesis is valid, the expected number of self-employed who prefer fiscal policy is (rounded to the nearest whole number)...

• 244

• 549

• 506

• 292

If the null hypothesis is valid, the expected number of paid employees who prefer monetary policy is (rounded to the nearest whole number)...

• 114

• 144

• 444

• 187

• 950

• 8.753

• 43.578

• 2

• 1

• 2

• 3

• 4

• 3.841

• 5.991

• 7.815

• 9.488

Are employment status and economic policy preference related (at the 5% level-of-significance)?

• Yes

• No

A franchisor records monthly profits (in £) from each of its 180 franchisees. Sales for the most recent month are given in the table below. To advertise its franchise the franchisor would lke to publish probabilities that a franchisee can hope to earn for each of several profit brackets. To calculate these probabilities, the franchisor models profits as following a normal distribution. Is the normal distribution an appropriate model to use, given the data in the table? [From the raw data, the sample mean profit is £1843.17, and the sample standard deviation is £643.63.]

To give a solution, ANSWER the following questions.

The null and alternative hypotheses are: