State the hypotheses and draw the critical region sketch using the 1% level of significance to test if for independence for a contingency table that has 4 rows and 5 columns.
Solution:
Here, we have to use chi square test for independence of two categorical variables.
Null hypothesis: H0: Two variables are independent.
Alternative hypothesis: Ha: Two variables are dependent.
We are given
Number of rows = r = 4
Number of columns = c = 5
Degrees of freedom = df = (r – 1)*(c – 1) = (4 - 1)*(5 - 1) = 3*4 = 12
Degrees of freedom = 12
α = 0.01
Critical value = 26.21696731
(by using chi-square table or excel)
Critical region: Reject H0 if χ2 > 26.22
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