itable, they must sell more than 350 cars in a month. The management of the dealership wants to know how often they are profitable so they sample 18 months and find that in 9 of them they were profitable. Let p denote the probability that the dealer is profitable in a given month. In order to measure if the dealership is under-performing, the manager wants to know whether this probability is less than 60%. Test this hypothesis at the α = 0.05 level. (d) Draw a picture of the distribution of the test statistic under H0. Label and provide values for the critical value and the test statistic, and shade the critical region. - for the test statistic I got -0.8665 and for the critical value I did qnorm(0.5) to get 1.6449
Contingency Table
A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.
Binomial Distribution
Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.
A car dealership buys vehicles from the manufacturer to sell at their dealership. Suppose that in order for them to be profitable, they must sell more than 350 cars in a month. The management of the dealership wants to know how often they are profitable so they sample 18 months and find that in 9 of them they were profitable. Let p denote the probability that the dealer is profitable in a given month. In order to measure if the dealership is under-performing, the manager wants to know whether this probability is less than 60%. Test this hypothesis at the α = 0.05 level.
(d) Draw a picture of the distribution of the test statistic under H0. Label and provide values for the critical value and the test statistic, and shade the critical region. - for the test statistic I got -0.8665 and for the critical value I did qnorm(0.5) to get 1.6449
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