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18. A major car manufacturer was interested in whether its midsize car was selling consistently in two markets with
respect to the annual income of the car purchasers. Five-hundred new car buyers in Chicago and Miami were surveyed. In
Chicago, the following pattern was observed: < $20,000 5%; $20,000-$29,999 0%; $30,000-$39,999 40%; $40,000-
$49,999 30%; ≥ $50,000 5%. Among those surveyed in Miami, 20 earned under $20,000; 70 earned between $20,000 and
$30,000; 265 earned between $30,000 and $40,000; 125 earned between $40,000 and $50,000; and 20 earned more than
$50,000. Using the data provided, the calculated value of |2 =
Not enough information is provided to calculate the value.
The calculated value of |2 would be 36.30. See 17–4: Testing Hypotheses About
Individual Variables.
17.05 – Overview the basic purpose of hypothesis testing.
19. Which statement(s) pertaining to the chi-square distribution is FALSE?
The chi-square distribution is completely determined by its degrees of freedom.
The variable of interest is broken into k mutually exclusive categories.
The expected number falling into a category is generated from the null hypothesis.
The chi-square degrees of freedom are given by k – 2.
The chi-square is appropriate for independent trials.
All of the statements are true except that the chi-square degrees of freedom are
given by k – 2. See 17–4: Testing Hypotheses About Individual Variables.
17.05 – Overview the basic purpose of hypothesis testing.
20. The chi-square test is an approximate test. The approximation is relatively good if the
expected number of cases in each category is 10 or more.
expected number of cases in each category is 5 or more.