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QUESTION 3 In a study of vehicle ownership, it has been found that 29% of U.S. h

ID: 3226099 • Letter: Q

Question

QUESTION 3 In a study of vehicle ownership, it has been found that 29% of U.S. households do not own a vehicle, with 46% owning 1 vehicle, and the remaining owning 2 or more vehicles. The data for a random sample of 205 households in a resort community are as follows: 76 owned 0 vehicles, 108 owned 1 vehicle, and the remaining owned 2 or more vehicles. When testing (at the 10% level of significance) whether the vehicle-ownership distribution in this community differs from that of the nation as a whole what is the critical value? (please round your answer to 3 decimal places) MUST SHOW ALL WORK AND CALCULATIONS

Explanation / Answer

here degree of freedom =number of categories-1 =3-1=2

for 2 df and 0.1 level critcal value of chi distribution =4.6052

applying chi square goodness of fit test:

as test stat =24.4525 is greater then criitcal value, we conclude that  the vehicle-ownership distribution in this community differs from that of the nation as a whole

observed Expected Chi square Cars Probability O E=total*p =(O-E)^2/E 0 0.29 76.000 59.45 4.61 1 0.46 108.000 94.30 1.99 2 or more 0.25 21.000 51.25 17.85 205 205 24.4525
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