According to an article in Marketing News , fewer checks are being written at th

Question

According to an article in Marketing News, fewer checks are being written at the grocery store checkout than in the past. To determine whether there is a difference in the proportion of shoppers who pay by check among three consecutive years at a 0.05 level of significance, the results of a survey of 500 shoppers in three consecutive years are obtained and presented below.

Referring to the above table, what is the expected number of shoppers who pay by check in year 1, if there is no difference in the proportion of shoppers who pay by check among the three years?

Select one:

a. 150

b. 187.5

c. 175

d. 225

Explanation / Answer

Relative proportion of shoppers who pay by check is (225+175+125) / (1500 = 0.35

Hence, expected no. of shoppers who pay by check in year 1 = 500*0.35=175

hence, c is the correct answer.

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