# Basic Statistics in PHStat

- Using PHSTat

- Send Excel + Paste into Word also

* Must write out a NULL & HYPOTHESIS and include BUT WHAT DOES THIS MEAN TO A MANAGER??

See attached file for solution template.

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#### Solution Preview

Please see the attached files.

Must write out a NULL & HYPOTHESIS

and include BUT WHAT DOES THIS MEAN TO A MANAGER??

Problem #1 For this problem use the following contingency table:

A B Total

1 20 30 50

2 30 45 75

Total 50 75 125

The null hypothesis tested is

H0: There is no association between row and column attributes

The alternative Hypothesis

H1: There is association between row and column attributes

Rejection Criteria: Reject the null hypothesis, if the calculated value of chi square is greater than the critical value of Chi square with 1 d.f at 0.05 significance level

a. Find the expected frequency for each cell.

Expected Frequencies

Column variable

A B Total

1 20 30 50

2 30 45 75

Total 50 75 125

b. Compare the observed and expected frequencies in each cell.

The chi square contribution in each cell is given below

Column variable

A B Total

1 0 0 0

2 0 0 0

Total 0 0 0

c. Compare the X2 statistic. Is it significant at alpha () = .05.

Data

Level of Significance 0.05

Number of Rows 2

Number of Columns 2

Degrees of Freedom 1

Results

Critical Value 3.841459

Chi-Square Test Statistic 0

p-Value 1

Do not reject the null hypothesis

Conclusion: Since the Chi Square test Statistic is less than the critical value , the null hypothesis that there is no association between row variable and column is accepted

Problem #2 A survey for Internet users in the United States, Australia, and Europe studied whether those who downloaded music subsequently purchased a CD or tape of the music ("net Music Inspires Buying." USA Today, January 23, 2001, 1A). The survey reported that 77% of Americans, 78% of Australians, and 54% of Europeans who downloaded music get inspired to purchase the CD or tape of music. Suppose the survey was based on a sample of 500 Americans, 250 ...

#### Solution Summary

This solution gives the step by step method for solving business statistics problems using PHSTAT