Conduct the hypothesis test and provide the test statistic, critical value and P

Question

Conduct the hypothesis test and provide the test statistic, critical value and P-value, and state the conclusion. A person randomly selected 100 checks and recorded the cents portions of those checks. The table below lists those cents portions categorized according to the indicated values. Use a .025

significance level to test the claim that the four categories are equally likely. The person expected that many checks for whole dollar amounts would result in a disproportionately high frequency for the first category, but do the results support that expectation?

Cents portion of check

0-24

25-49

50-74

75-99

Numbers

32

23

21

24

What is the Test Statistic =

Critical Value =

P-Value =

And final on hypothesis =

Cents portion of check

0-24

25-49

50-74

75-99

Numbers

32

23

21

24

Explanation / Answer

H0:All four categories are equally likely

Ha: atleast two are not equally likely

(Two tailed chi square test)

Prepare contingency table with expected values

Since p > 0.025 we accept nullhypothesis

All are equally likely is statistically evident.

Cents portion of check 0-24 25-49 50-74 75-99 Total Observed Numbers 32 23 21 24 100 Expected numbers 25 25 25 25 100 (O-E)^2/E 1.96 0.16 0.64 0.04 2.8 Chi square 2.8 df 3 p value 0.4235

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