Concept explainers
To find: The expected cell counts from the two-way table of the referred Exercise 24.9.

Answer to Problem 22E
Solution: The row-wise and column-wise total for a two-way table is shown below:
Opinion | Nature of degree | Total | ||
Junior College | Bachelor | Graduate | ||
Not scientific at all | 44 | 122 | 71 | 237 |
Purely scientific or a type of scientific | 31 | 62 | 27 | 120 |
Total | 75 | 184 | 98 | 357 |
The table of expected cell counts is obtained as:
Opinion | Expected counts | ||
Junior College | Bachelor | Graduate | |
Not scientific at all | 49.8 | 122.2 | 65.1 |
Purely scientific or a type of scientific | 25.2 | 61.9 | 32.9 |
Explanation of Solution
Calculation:
Form the two-way table, find the row and column totals. The two-way table that contains the row and the column totals is obtained as:
Opinion | Nature of degree | Total | ||
Junior College | Bachelor | Graduate | ||
Not scientific at all | 44 | 122 | 71 | 237 |
Purely scientific or a type of scientific | 31 | 62 | 27 | 120 |
Total | 75 | 184 | 98 | 357 |
Now, calculate the expected cell counts of each cell. The expected cell count is defined by the formula:
The expected count for Junior college degree adults whose opinion is that astrology is not scientific at all is calculated as:
The expected count for Bachelor degree adults whose opinion is that astrology is not scientific at all is calculated as:
Similarly, calculate the expected counts for all cells and it is tabulated as:
Opinion | Expected counts | ||
Junior College | Bachelor | Graduate | |
Not scientific at all | 49.8 | 122.2 | 65.1 |
Purely scientific or a type of scientific | 25.2 | 61.8 | 32.9 |
To determine: The observed counts that differ most from the expected counts.
Solution: The observed counts of Junior college degree and graduate degree differ from the expected counts. The observed counts of Bachelor degree is almost the same as expected counts.
Explanation: A survey is conducted on a simple random sample of adults on their opinion on astrology whether it is purely scientific or type of scientific or not at all scientific. The two-way table that shows the counts for the number of people in the sample for three levels of higher education degrees and their opinion on astrology is provided.
The obtained table of expected counts shows that the observed counts are same as expected counts for Bachelor degree.
But the observed counts differ from expected counts for Junior college degree and graduate degree.
(b)
To find: The chi-square statistic and the cell that contributes maximum to the chi-square statistic.
(b)

Answer to Problem 22E
Solution: The chi-square statistic is obtained as 3.602. The cell that contributes maximum to the chi-square statistic is the cell with Junior college degree with the opinion that astrology is purely scientific or a type of scientific.
Explanation of Solution
Calculation:
The chi-square statistic is the measure of the distance of the observed counts from the expected counts in a two-way table. The formula for the chi-square statistic is defined as:
Substitute the obtained observed and expected counts for each cell to determine the chi-square statistic. So, the chi-square statistic is calculated as:
In the obtained calculations for chi-square statistic of 3.602, it showed that the cell that corresponds to Junior college degree with the opinion that astrology is purely scientific or a type of scientific contributes maximum value of 1.335 to the chi-square statistic.
(c)
Section 1:
To find: The degrees of freedom.
(c)
Section 1:

Answer to Problem 22E
Solution: The degrees of freedom are 2.
Explanation of Solution
Calculation:
The degrees of freedom for a chi-square test are defined as:
Where, r is the number of rows and c is the number of columns in a two-way table.
In the provided problem, the number of rows is 2 and the number of columns is 3. So, the degrees of freedom are calculated as:
Section 2:
To test: The significance of the chi-square test by using Table 24.1.
Solution: The survey shows a significant association between the nature of degree and the opinion on astrology at the significance level 0.20 and it does not shows a significant association between the nature of degree and the opinion on astrology at the significance level 0.15.
Explanation:
Calculation:
The null
Use Table 24.1 of critical values for chi-square test. The obtained chi-square statistic is 3.602, which is larger than the critical value of 3.22 at the significance level of 0.20 and smaller than the critical value of 3.79 for significance level of 0.15 for two degrees of freedom.
If the significance level 0.20 is used, then the calculated value 3.602 is greater than the critical value 3.22, so it can be said that the result is significant. But if the significance level 0.15 is used then the calculated value 3.602 is less than the critical value 3.79, so it can be said that the result is insignificant.
Conclusion:
At the significance level 0.20, the decision is to reject the null hypothesis, so it can be said that the survey shows there is some association between the nature of degree and the opinion on astrology. At the significance level 0.15, the decision is to accept the null hypothesis, so it can be said that the survey shows there is no association between the nature of degree and the opinion on astrology.
Want to see more full solutions like this?
Chapter 24 Solutions
Statistics: Concepts and Controv. (Instructor's)
- Note: The purpose of this problem below is to use computational techniques (Excelspreadsheet, Matlab, R, Python, etc.) and code the dynamic programming ideas seen inclass. Please provide the numerical answer to the questions as well as a sample of yourwork (spreadsheet, code file, etc.).We consider an N-period binomial model with the following properties: N = 60, thecurrent stock price is S0 = 1000; on each period, the stock price increases by 0.5% whenit moves up and decreases by 0.3% when it moves down. The annual interest rate on themoney market is 5%. (Notice that this model is a CRR model, which means that thebinomial tree is recombining.)(a) Find the price at time t0 = 0 of a (European) call option with strike price K = 1040and maturity T = 1 year.(b) Find the price at time t0 = 0 of a (European) put option with strike price K = 1040and maturity T = 1 year.(c) We consider now, that you are at time t5 (i.e. after 5 periods, which represents 1month later). Assume that the stock…arrow_forwardshow work in paperarrow_forwardshow all work (...or what you entered into your calculator...)arrow_forward
- answerarrow_forwardQuestion 2 The data below provides the battery life of thirty eight (38) motorcycle batteries. 100 83 83 105 110 81 114 99 101 105 78 115 74 96 106 89 94 81 106 91 93 86 79 103 94 108 113 100 117 120 77 93 93 85 76 89 78 88 680 a. Test the hypothesis that mean battery life is greater than 90. Use the 1% level of significance. b. Determine if the mean battery life is different from 80. Use the 10% level of significance. Show all steps for the hypothesis test c. Would your conlcusion in part (b) change at the 5% level of significance? | d. Confirm test results in part (b) using JASP. Note: All JASP input files and output tables should be providedarrow_forwardSuppose that 80% of athletes at a certain college graduate. You randomly select eight athletes. What’s the chance that at most 7 of them graduate?arrow_forward
- Suppose that you flip a fair coin four times. What’s the chance of getting at least one head?arrow_forwardSuppose that the chance that an elementary student eats hot lunch is 30 percent. What’s the chance that, among 20 randomly selected students, between 6 and 8 students eat hot lunch (inclusive)?arrow_forwardBob’s commuting times to work are varied. He makes it to work on time 80 percent of the time. On 12 randomly selected trips to work, what’s the chance that Bob makes it on time at least 10 times?arrow_forward
- Your chance of winning a small prize in a scratch-off ticket is 10 percent. You buy five tickets. What’s the chance you will win at least one prize?arrow_forwardSuppose that 60 percent of families own a pet. You randomly sample four families. What is the chance that two or three of them own a pet?arrow_forwardIf 40 percent of university students purchase their textbooks online, in a random sample of five students, what’s the chance that exactly one of them purchased their textbooks online?arrow_forward
- MATLAB: An Introduction with ApplicationsStatisticsISBN:9781119256830Author:Amos GilatPublisher:John Wiley & Sons IncProbability and Statistics for Engineering and th...StatisticsISBN:9781305251809Author:Jay L. DevorePublisher:Cengage LearningStatistics for The Behavioral Sciences (MindTap C...StatisticsISBN:9781305504912Author:Frederick J Gravetter, Larry B. WallnauPublisher:Cengage Learning
- Elementary Statistics: Picturing the World (7th E...StatisticsISBN:9780134683416Author:Ron Larson, Betsy FarberPublisher:PEARSONThe Basic Practice of StatisticsStatisticsISBN:9781319042578Author:David S. Moore, William I. Notz, Michael A. FlignerPublisher:W. H. FreemanIntroduction to the Practice of StatisticsStatisticsISBN:9781319013387Author:David S. Moore, George P. McCabe, Bruce A. CraigPublisher:W. H. Freeman





