Question

As a class, we own and operate four car washes in Tucson. We notice that fewer people are out driving right now, so we might have to make the difficult decision to down-size our operation by closing a location. We gather the following information about each location.

Location Full-Service Washes

Oracle 213

Tangerine 170

Kolb 201

Speedway 216

At the 0.05 significance level, is there a difference in the number of full-service washes purchased at each location?

(A) Write out the null and alternate hypotheses for this problem.

(B) State the decision rule at the 0.05 level of significance.

(C) Compute the chi-square value.

(D) Make a decision about the hypotheses. Be sure to clearly articulate what you would do about our car wash locations.

Answer 1