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    Chi square test for goodness of fit

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    10. The chief of security for the Mall of the Dakotas was directed to study the problem of missing goods. He selected a sample of 100 boxes that had been tampered with and ascertained that for 60 of the boxes, the missing pants, shoes, and so on were attributed to shoplifting. For 30 other boxes employees had stolen the goods, and for the remaining 10 boxes he blamed poor inventory control. In his report to the mall management, can he say that shoplifting is twice as likely to be the cause of the loss as compared with either employee theft or poor inventory control and that employee theft and poor inventory control are equally likely? Use the .02 significance level.

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    Solution Summary

    Step by step method for testing the hypothesis under 5 step approach is discussed here. Excel template for each problem is also included. This template can be used to obtain the answers of similar problems.