A survey was conducted two years ago asking college students their top motivatio

Question

A survey was conducted two years ago asking college students their top motivations for using a credit card. To determine whether this distribution has changed, you randomly select 425 college students and ask each one what the top motivation is for using a credit card. Can you conclude that there has been a change in the claimed or expected distribution? Use =0.10. Complete parts (a) through (d) | Old Survey % 28% 24% 21% 7% 20% New Survey Frequency, f 110 97 108 48 62 Response Rewards Low rates Cash back Discount Othe a. State Ho and Ha and identify the claim What is the null hypothesis, Ho? ( A. The distribution of motivations is 110 rewards. 97 low rate. 108 cash back. 48discounts. and 62 other O B. The distribution of motivations is 28% rewards, 24% low rate, 21% cash back. 7% discounts, and 20% other ° C. The distribution of motivations differs from the expected distribution What is the alternate hypothesis, Ha? ( A. The distribution of motivations is 28% rewards. 24% low rate, 21% cash back. 7% discounts, and 20% other O B. The distribution of motivations differs from the claimed or expected distribution ° C. The distribution of motivations is the same as the claimed or expected distribution Which hypothesis is the claim? 0H0 (b) Determine the critical value, and the rejection region

Explanation / Answer

a)
Null hypothesis - Option B

Alternate hypothesis - Option B

Ha is claim hypothesis

b)

critical value of chi-square = 6.25 (=CHISQ.INV.RT(0.1,3))

Rejection region - Option D

chi-square = 461.4560

Reject H0. At 10% significance level there are enough evidence to conclude that the distribution of motivations differe the claimed or expected

Responses Observed Frequency(Oi) Survey % Expected Frequency(Ei) (Oi-Ei)^2/Ei Rewards 110 28% 119 0.680672269 Low Rates 97 24% 102 0.245098039 Cash back 108 21% 89.25 3.93907563 discounts 48 1% 4.25 450.3676471 other 62 20% 85 6.223529412 425 461.4560224

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.