Direction: Perform what is being asked.

(42 points)

1. A department store, A, has four competitors: B, C, D, and E. Store A hires a consultant to determine if the percentage
of shoppers who prefer each of the five (5) stores is the same. A survey with 1100 randomly selected shoppers is
conducted, and below are the results of which one of the store's shoppers prefer. Is there enough evidence using a
significance level 𝛼𝛼 = 0.05 to conclude that the proportions are really the same? (7 items x 3 points)

Store A B C D E

Number of Shoppers 262 234 204 190 210

a. The null hypothesis 𝐻𝐻0 :

the percentage of shoppers who prefer each of the five (5) stores is equal to the expected frequencies.
b. The alternative hypothesis 𝐻𝐻𝑎𝑎 :
the percentage of shoppers who prefer each of the five (5) stores is not equal.
c. The level of significance 𝛼𝛼 =
0.05
d. The degrees of freedom:
k–1=5–1=4
e. The test statistic:

Store Percent Numb E O O− ( O − E )² (O – E)²

age per er of E
store Shoppe E
rs
A 1/5=0.2x100=20 262 1100/5 = 220 262 262 – 220 = 42 42x42 = 1764 8.018
%
B 1/5=0.2x100=20 234 1100/5 = 220 234 234 – 220 = 14 14x14 = 196 0.891
%
C 1/5=0.2x100=20 204 1100/5 = 220 204 204 – 220 = -16 -16x-16 = 256 1.163
%
D 1/5=0.2x100=20 190 1100/5 = 220 190 190 – 220 = -30 -30x-30 = 900 4.091
%
E 1/5=0.2x100=20 210 1100/5 = 220 210 210 – 220 = -10 -10x-10 =100 0.455
%
5 100% 1100 1100 1100 14.618
 x2 = ∑ =∑ 14.619

f. The critical value:

𝛼 = 0.05 and k = 5, 5 – 1 = 4. The critical value is 9.49
g. Decision:
Since X2 ≈ 14.619 > 9.49, there is enough statistical evidence to reject the null hypothesis. Therefore, the
percentage of shoppers who prefer each of the five (5) stores is not equal.

2. Suppose that we have a 6-sided die. We assume that the die is unbiased (upon rolling the die, each outcome is
equally likely). An experiment is conducted in which the die is rolled 240 times. The outcomes are in the table below.
At a significance level of 𝛼𝛼 = 0.05, is there enough evidence to support the hypothesis that the die is unbiased? (7
items x 3 points)

Outcome 1 2 3 4 5 6
Frequency 34 44 30 46 51 35

a. The null hypothesis 𝐻𝐻0 :

Each Outcome is equally likely.
b. The alternative hypothesis 𝐻𝐻𝑎𝑎 :
Each Outcome is not equally likely.
c. The level of significance 𝛼𝛼 =
0.05
d. The degrees of freedom:
k–1=6–1=5
e. The test statistic:

(O – E)² (O – E)²
Outcome Frequenc E O O-E
y E

1 34 240 / 6 = 40 34 34 – 40 = -6 -6x-6 = 36 36/40 = 0.9

2 44 240 / 6 = 40 44 44 – 40 = 4 4x4 = 16 16/40 = 0.4
3 30 240 / 6 = 40 30 30 – 40 = -10 -10x-10=100 100/40 = 2.5
4 46 240 / 6 = 40 46 46 – 40 = 6 6x6 = 36 36/40 = 0.9
5 51 240 / 6 = 40 51 51 – 40 = 11 11x11 =121 121/40 = 3.025
6 35 240 / 6 = 40 35 35 – 40 = - 5 -5x-5 = 25 25/40 = 0.625
6 240 240 240 8.35
 x2 = ∑ =∑ 8.35

f. The critical value:

𝛼 = 0.05 and k -1 = 5, 6 – 1 = 5. The critical value is 11.07

g. Decision:
Since x2 = 8.35 < 11.07, there is not enough statistical evidence to reject the null hypothesis.
Therefore, Each Outcome is not equally likely. The die is unbiased.