Question

Conduct the hypothesis test and provide the test statistic and the critical​ value, and state the conclusion.

A person randomly selected

100

checks and recorded the cents portions of those checks. The table below lists those cents portions categorized according to the indicated values. Use a

0.025

significance level to test the claim that the four categories are equally likely. The person expected that many checks for whole dollar amounts would result in a disproportionately high frequency for the first​ category, but do the results support that​ expectation?

Cents portion of check	​0-24	​25-49	​50-74	​75-99
Number	61	18	9	12

Click here to view the chi-square distribution table.

The test statistic is

nothing.

​(Round to three decimal places as​ needed.)

Answer 1

The test statistic is:

Chi-square = 70.800

The null and alternative hypotheses are:

H₀: The four categories are equally likely.

H₁: The four categories are not equally likely.

Conclusion: The p-value of chi-square test is 0.000. This p-value is less than 0.025. Hence we reject null hypothesis and conclude that the four categories are not equally likely.