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Chi-Square test

One study looked at of 234 magazines. Two pieces of information were collected on each -- its cover price and whether it continued to be published. The table below summarizes the data in a 4X2 contingency table. Notice that the last two rows suggest that the higher priced publications are more likely to survive. Can the apparent disparity be written off to chance, or can we reject the independence of price and longevity? Find the p-value and make the decision at the level alpha = 0.05

Still Being Has Ceased
Published Publication Total

<$1.99 70 65 135
Cover $2.00 - $2.49 39 28 67
Price $2.50 - $2.99 14 3 17
$3.00+ 13 2 15

Total 136 98 234

Solution Summary

Step by step method for computing test statistic for chi-sqaure test is given in the answer.