Question

# Is the transportation mode used to ship goods independent of type of industry? Suppose the following...

Is the transportation mode used to ship goods independent of type of industry? Suppose the following contingency table represents frequency counts of types of transportation used by the publishing and the computer hardware industries. Analyze the data by using the chi-square test of independence to determine whether type of industry is independent of transportation mode. Let α = 0.05.

Transportation Mode

Industry
 Air Train Truck Publishing 33 12 36 Computer Hardware 5 6 24

(Round the intermediate values to 2 decimal places. Round your answer to 2 decimal places.)

Observed χ2 =
Transportation mode is (not independent OR independent) of industry.

 Applying chi square test of independence:
 Observed Air train Truck Total Publishing 33 12 36 81 Computer Harfware 5 6 24 35 total 38 18 60 116 Expected Ei=row total*column total/grand total Air train Truck Total Publishing 26.53 12.57 41.90 81 Computer Harfware 11.47 5.43 18.10 35 total 38 18 60 116 chi square    χ2 =(Oi-Ei)2/Ei Air train Truck Total Publishing 1.58 0.03 0.83 2.4400 Computer Harfware 3.65 0.06 1.92 5.6300 total 5.2300 0.0900 2.7500 8.0700 Observed test statistic X2= 8.070
 p value = 0.018 from excel: chidist(8.07,2)
 since p value is less than significance level , we reject null hypothesis

Transportation mode is not independent of industry.

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