As part of the quality control process, a chain of grocery stores carries out a monthly...


As part of the quality control process, a chain of grocery stores carries out a monthly comparison of scanned prices to posted prices. The results of 200 prices are as follows:

Regular Price Items Sales Items
Scanned price was too low 9 3
Scanned price was too high 5 13
Scanned price was correct 73 97

Using a significance level of 0.05, carry out a contingency table analysis to test whether there is a relationship between scanning error rates and regular/sales price items.

Chi-square distribution

A Chi-square distribution is a positively skewed distribution and it is used to find the relationship between categories and other assumptions of statistics. The hypothesis test includes the contingency table where the degree of freedom is the product of (r-1) and (c-1,) where r denotes the number of rows and c is the number of columns.

Answer and Explanation: 1

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Given information

Sample size (N) = 200

Significance level = 0.05

The hypothesis is given as:

{eq}\begin{align*} {H_0};{\rm{There \ is \ no \...

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Learn more about this topic:

Chi Square: Definition & Analysis


Chapter 1 / Lesson 27

In this lesson, you will learn the definition of chi square and how it is used to determine whether a null hypothesis should be accepted or rejected. We will work through an example, then you can take a brief quiz to see what you learned.

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