The quality control department at Food Town Inc., a grocery chain in upstate New York, conducts a monthly check on the comparison of scanned prices to posted prices. The chart below summarizes the results of a sample of 500 items last month. Company management would like to know whether there is any relationship between error rates on regularly priced items and specially priced items. Undercharge Overcharge Correct price Regular Price Special Price Reject Ho if chi-square > 20 15 200 10 30 225 Click here for the Excel Data File a. State the decision rule. Use the 0.01 significance level. (Round your answer to 2 decimal places.) Ho: There is no relationship between error rates and item type. H₁: There is a relationship between error rates and item type.

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The quality control department at Food Town Inc., a grocery chain in upstate New York, conducts a monthly check on the comparison
of scanned prices to posted prices. The chart below summarizes the results of a sample of 500 items last month. Company
management would like to know whether there is any relationship between error rates on regularly priced items and specially priced
items.
Undercharge
Overcharge
Correct price
Regular Price Special Price
20
15
200
Click here for the Excel Data File
Reject Ho if chi-square >
10
30
225
a. State the decision rule. Use the 0.01 significance level. (Round your answer to 2 decimal places.)
Ho: There is no relationship between error rates and item type.
H₁: There is a relationship between error rates and item type.
Transcribed Image Text:The quality control department at Food Town Inc., a grocery chain in upstate New York, conducts a monthly check on the comparison of scanned prices to posted prices. The chart below summarizes the results of a sample of 500 items last month. Company management would like to know whether there is any relationship between error rates on regularly priced items and specially priced items. Undercharge Overcharge Correct price Regular Price Special Price 20 15 200 Click here for the Excel Data File Reject Ho if chi-square > 10 30 225 a. State the decision rule. Use the 0.01 significance level. (Round your answer to 2 decimal places.) Ho: There is no relationship between error rates and item type. H₁: There is a relationship between error rates and item type.
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