Conduct the hypothesis test and provide the test statistic and the critical value, and state the conclusion. K 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? 4 Cents portion of check Number 0-24 60 25-49 10 Click here to view the chi-square distribution table. The test statistic is (Round to three decimal places as needed.) 50-74 15 ... 75-99 15

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**Chi-square Distribution Table**

This table provides critical values of the chi-square distribution for different degrees of freedom and significance levels. Use this table to find the critical value for your test to determine the statistical significance of your results.

- **Column Headers**: Represent the significance levels (0.995, 0.99, 0.975, 0.95, 0.90, 0.10), which correspond to the area to the right of the critical value.
  
- **Row Headers**: Represent the degrees of freedom, ranging from 1 to 10.

- **Table Values**: Each cell contains the critical value of the chi-square statistic corresponding to the specific degree of freedom and significance level.

| Degrees of Freedom | 0.995 | 0.99 | 0.975 | 0.95 | 0.90 | 0.10  |
|---------------------|--------|-------|--------|------|------|-------|
| 1                   | -      | -     | 0.001  | 0.004| 0.016| 2.706 |
| 2                   | 0.010  | 0.020 | 0.051  | 0.103| 0.211| 4.605 |
| 3                   | 0.072  | 0.115 | 0.216  | 0.352| 0.584| 6.251 |
| 4                   | 0.207  | 0.297 | 0.484  | 0.711| 1.064| 7.779 |
| 5                   | 0.412  | 0.554 | 0.831  | 1.145| 1.610| 9.236 |
| 6                   | 0.676  | 0.872 | 1.237  | 1.635| 2.204| 10.645|
| 7                   | 0.989  | 1.239 | 1.690  | 2.167| 2.833| 12.017|
| 8                   | 1.344  | 1.646 | 2.180  | 2.733| 3.490| 13.362|
| 9                   | 1.735
Transcribed Image Text:**Chi-square Distribution Table** This table provides critical values of the chi-square distribution for different degrees of freedom and significance levels. Use this table to find the critical value for your test to determine the statistical significance of your results. - **Column Headers**: Represent the significance levels (0.995, 0.99, 0.975, 0.95, 0.90, 0.10), which correspond to the area to the right of the critical value. - **Row Headers**: Represent the degrees of freedom, ranging from 1 to 10. - **Table Values**: Each cell contains the critical value of the chi-square statistic corresponding to the specific degree of freedom and significance level. | Degrees of Freedom | 0.995 | 0.99 | 0.975 | 0.95 | 0.90 | 0.10 | |---------------------|--------|-------|--------|------|------|-------| | 1 | - | - | 0.001 | 0.004| 0.016| 2.706 | | 2 | 0.010 | 0.020 | 0.051 | 0.103| 0.211| 4.605 | | 3 | 0.072 | 0.115 | 0.216 | 0.352| 0.584| 6.251 | | 4 | 0.207 | 0.297 | 0.484 | 0.711| 1.064| 7.779 | | 5 | 0.412 | 0.554 | 0.831 | 1.145| 1.610| 9.236 | | 6 | 0.676 | 0.872 | 1.237 | 1.635| 2.204| 10.645| | 7 | 0.989 | 1.239 | 1.690 | 2.167| 2.833| 12.017| | 8 | 1.344 | 1.646 | 2.180 | 2.733| 3.490| 13.362| | 9 | 1.735
**Hypothesis Testing on Cents Portions of Checks**

A person randomly selected 100 checks and categorized the cents portions into four distinct ranges. The goal was to test if these categories were equally likely using a significance level of 0.025. The hypothesis was that the first category (0-24 cents) would show a disproportionately high frequency due to many checks being for whole dollar amounts.

**Categories and Observed Frequencies:**
- **0-24 cents:** 60 checks
- **25-49 cents:** 10 checks
- **50-74 cents:** 15 checks
- **75-99 cents:** 15 checks

To assess this hypothesis, one would use a chi-square test. The reader can find more details by consulting the chi-square distribution table linked in the original resource.

**Instructions:**
Calculate the test statistic by comparing the observed frequencies with the expected frequencies under the null hypothesis of equal likelihood. Enter the computed test statistic value, rounded to three decimal places, in the designated field.

**Conclusion:**
Based on the test results, it will be determined whether the initial hypothesis of a disproportionately high frequency in the first category holds true, considering the specified significance level.
Transcribed Image Text:**Hypothesis Testing on Cents Portions of Checks** A person randomly selected 100 checks and categorized the cents portions into four distinct ranges. The goal was to test if these categories were equally likely using a significance level of 0.025. The hypothesis was that the first category (0-24 cents) would show a disproportionately high frequency due to many checks being for whole dollar amounts. **Categories and Observed Frequencies:** - **0-24 cents:** 60 checks - **25-49 cents:** 10 checks - **50-74 cents:** 15 checks - **75-99 cents:** 15 checks To assess this hypothesis, one would use a chi-square test. The reader can find more details by consulting the chi-square distribution table linked in the original resource. **Instructions:** Calculate the test statistic by comparing the observed frequencies with the expected frequencies under the null hypothesis of equal likelihood. Enter the computed test statistic value, rounded to three decimal places, in the designated field. **Conclusion:** Based on the test results, it will be determined whether the initial hypothesis of a disproportionately high frequency in the first category holds true, considering the specified significance level.
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