Exam 16: Analysis of Categorical Data

Ophelia O'Brien,VP of Consumer Credit of American First Banks (AFB),monitors the default rate on personal loans at the AFB member banks. One of her standards is "no more than 5% of personal loans should be in default." On each Friday,the default rate is calculated for a sample of 500 personal loans. Last Friday's sample contained 30 defaulted loans. Using $\alpha$ = 0.01,observed chi-square value is _______.

A suburban realtor is studying commuter time in the Houston metropolitan area.She has been told the average weekday travel time from a southern suburb at 8:00am is 45 minutes.For five months she counts the number of days that it takes her more than 45 minutes to arrive in downtown when she leaves her house at 8:00am.She expects the data are uniformly distributed across the five months.Her sample of observed data yields the following frequencies 9 days,15 days,8 days,11 days,12 days. Using $\alpha$ = .10,the appropriate decision is _______.

A market researcher believes that industry type is independent of the operating margin.He compiles a table with seven industry classifications and classifies operating margin into five levels. When applying a chi-square test of independence to this table,the number of degrees of freedom is _____.

A gasoline distributor wonders whether an individual's income level influences the grade of gasoline purchased.The following is a contingency table from a random sample of 300 individuals. Using $\alpha$ = .01,critical chi-square value is ______________.

A travel agent believes that vacation destinations are independent of the region of the country that the vacationer resides.She has compiled a table with six vacation destinations and five regions throughout the United States.When applying a chi-square test of independence to this table,the number of degrees of freedom is _____.