Question

From 99 of its restaurants, Noodles & Company managers collected data on per-person sales and the percent of sales due to "potstickers" (a popular food item). Both numerical variables failed tests for normality, so they tried a chi-square test. Each variable was converted into ordinal categories (low, medium, high) using cutoff points that produced roughly equal group sizes. At α = .02, is per-person spending independent of percent of sales from potstickers?

	Potsticker % of Sales
Per Person Spending	Low	Medium	High	Row Total
Low	18	7	8	33
Medium	10	11	5	26
High	12	9	19	40
Col Total	40	27	32	99

(a)

The hypothesis for the given issue is H₀: Percentage of Sales and Per-Person Spending are independent.

	No
	Yes

(b)	Calculate the chi-square test statistic, degrees of freedom, and the p-value. (Round your test statistic value to 2 decimal places and p-value to 4 decimal places. Leave no cells blank - be certain to enter "0" wherever required.)

Test statistic
d.f.
p-value

(c)

We reject the null and find dependence.

	Yes
	No

Answer 1