5. A certain company stock began at a starting price of $23

The calculated χ² = 0.57 does not fall in the critical region χ² ≥ 12.59 so we fail to reject the null hypothesis and conclude the proportion of fatal bicycle accidents in 2015 was the same for all days of the week.

Step-by-step explanation:

1) We set up our null and alternative hypothesis as

H0: proportion of fatal bicycle accidents in 2015 was the same for all days of the week

against the claim

Ha: proportion of fatal bicycle accidents in 2015 was not the same for all days of the week

2) the significance level alpha is set at 0.05

3) the test statistic under H0 is

χ²= ∑ (ni - npi)²/ npi

which has an approximate chi square distribution with ( n-1)=7-1= 6 d.f

4) The critical region is χ² ≥ χ² (0.05)6 = 12.59

5) Calculations:

χ²= ∑ (16- 14.28)²/14.28 + (12- 14.28)²/14.28 + (12- 14.28)²/14.28 + (13- 14.28)²/14.28 + (14- 14.28)²/14.28 + (15- 14.28)²/14.28 + (18- 14.28)²/14.28

χ²= 1/14.28 [ 2.938+ 5.1984 +5.1984+1.6384+0.0784 +1.6384+13.84]

χ²= 1/14.28[8.1364]

χ²= 0.569= 0.57

6) Conclusion:

The calculated χ² = 0.57 does not fall in the critical region χ² ≥ 12.59 so we fail to reject the null hypothesis and conclude the proportion of fatal bicycle accidents in 2015 was the same for all days of the week.

b.<u> It is r</u>easonable to conclude that the proportion of fatal bicycle accidents in 2015 was the same for all days of the week

6 0

3 years ago