Nationally, 63% of American own American cars, 26% of Americans own Asian cars, and the remaing Americans own non-Asian foreign cars. A survey of 223 people in California finds that 51% own American cars, 34% own Asian cars, and the remaining own non-Asian foreign cars. When testing (at the 10% level of significance) whether the proportions in California are the same as the national proportions, what is the test statistic (please round your answer to 3 decimal places)

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Nationally, 63% of American own American cars, 26% of Americans own Asian cars, and the remaing Americans own non-Asian foreign cars. A survey of 223 people in California finds that 51% own American cars, 34% own Asian cars, and the remaining own non-Asian foreign cars. When testing (at the 10% level of significance) whether the proportions in California are the same as the national proportions, what is the test statistic (please round your answer to 3 decimal places)

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To test if there is a discrepancy between theoretical proportions (i.e., the true proportions of various cars owned by Americans in this case) and experimental proportions (i.e., the proportions of various cars owned by 223 Americans) is purely random or due to ill-fit of observed data, the Chi-square test statistic is followed. It is formulated as:

χ2=i=1nOi-Ei2Ei

Where, Oi=observed frequency 

Ei=Expected frequency

 

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