Question

1. You have been asked to study whether there are any differences in the proportions of stores that have experienced a return rate of the shirt over the recent period of at least 20% based upon the region of the country where the stores are located. Random samples of stores in four regions of the country are selected. The sample data concerning whether the store has experienced a return rate of at least 20% for the item over the given time-period is shown in appendix two below. At each of the 5% and 2% levels of significance, are there any differences in the proportions of the stores in the various parts of the country concerning their having experienced at least a 20% return of the item over the period that is being studied? If at either significance level you find any differences in the proportions of the stores based upon location that have experienced at lease this return rate, perform the necessary work to ascertain where any possible differences lie.

Appendix Two:

                                                            Region

    ≥20% return          One             Two              Three             Four                 

           Yes                 28                   37                   29                   43

            No                   52                   43                   66                   47      

Answer 1