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 chisquare test of independence to determine whether
type of industry is independent of transportation mode. Let α =
0.05.
Transportation Mode  
Industry 

(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  E_{i}=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 χ^{2}  =(O_{i}E_{i})^{2}/E_{i}  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 X^{2}=  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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