Question

134) The following table shows the cross-classification of hedge funds by market capitalization (either small, mid,...

134) The following table shows the cross-classification of hedge funds by market capitalization (either small, mid, or large cap) and objective (either growth or value).

Growth

Value

Large Cap

23

19

Mid Cap

9

10

Small Cap

17

72

a. Set up the competing hypotheses to determine if market capitalization and objective are dependent.

b. Calculate the value of the test statistic and determine the degrees of freedom.

c. Compute the p-value. Does the evidence suggest market capitalization and objective are dependent at the 5% significance level?

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