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Statistics - Chi-Squared Test for independence

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Question :
A quality control engineer wants to compare the production process of parts manufactured by four different companies. The engineer randomly samples a total of 270 parts from the four companies and summarizes the results in the following table. Based upon the results of the sample, can the quality control engineer conclude that part quality and manufacturer are independent at level of significance of 1%

Part Quality Co. A Co. B Co. C Co. D Row Total
Defective 8 8 10 9
Non-Defective 60 65 60 50
Column Total

a) Formulate the hypothesis
b) State the decision rule
c) Calculate Chi-Square statistic
d) Determine the conclusion and answer the question

For the full description of the question, please see the attached question file.
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Null Hypothesis :
H0 : part quality and manufacturer are independent of each other
Alternate Hypothesis:
H1 ...

Solution Summary

In the solution for the posted problem on Chi-Squared Test for testing the Relationship between attributes( Test of Independence), the solution to the posted problem is given with step by step working and simplification in such a way that the student could easily understand the solution procedure and could use the solution of this problem as a model solution to solve other similar problems.

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Spending on welfare Race of respondent
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Too little 128 41 21 190
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4. We continue our analysis from Exercise 2, this time examining the relationship between social class (CLASS) and spending on welfare (NATFARE).
a) What is the number of degrees of freedom for this table?
b) Calculate the chi-square. Based on an alpha of 0.01, do you reject the null hypothesis? Explain the reason for your answer.

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