The revenue from selling xshirts is r(x) = 12x.

The Wall Street Journal Corporate Perceptions Study 2011 surveyed readers and asked how each rated the Quality of Management and

kykrilka [37]

Answer:

The calculated χ² = 17.0281 falls in the critical region χ² ≥ 9.49 so we reject the null hypothesis that the quality of management and the reputation of the company are independent and conclude quality of management and the reputation of the company are dependent

The p-value is 0 .001909. The result is significant at p < 0.05

Part b:

40 > 8.5

35> 7.5

25> 4

Step-by-step explanation:

1) Let the null and alternative hypothesis as

H0: the quality of management and the reputation of the company are independent

against the claim

Ha: the quality of management and the reputation of the company are dependent

2) The significance level alpha is set at 0.05

3) The test statistic under H0 is

χ²= ∑ (o - e)²/ e where O is the observed and e is the expected frequency

which has an approximate chi square distribution with ( 3-1) (3-1)= 4 d.f

4) Computations:

Under H0 ,

Observed Expected E χ²= ∑(O-e)²/e

40 35.00 0.71

25 24.50 0.01

5 10.50 2.88

35 40.00 0.62

35 28.0 1.75

10 12.00 0.33

25 25.00 0.00

10 17.50 3.21

15 7.50 7.50

∑ 17.0281

Column Totals 100 70 30 200 (Grand Total)

5) The critical region is χ² ≥ χ² (0.05)2 = 9.49

6) Conclusion:

The calculated χ² = 17.0281 falls in the critical region χ² ≥ 9.49 so we reject the null hypothesis that the quality of management and the reputation of the company are independent and conclude quality of management and the reputation of the company are dependent.

7) The p-value is 0 .001909. The result is significant at p < 0.05

The p- values tells that the variables are dependent.

Part b:

If we take the excellent row total = 70 and compare it with the excellent column total= 100

If we take the good row total = 70 and compare it with the good column total= 80

If we take the fair row total = 50 and compare it with the fair column total= 30

The two attributes are said to be associated if

Thus we see that ( where (A)(B) are row and columns totals and AB are the cell contents)

AB> (A)(B)/N

40 > 1700/200

40 > 8.5

35> 1500/200