You run a small business with three retail clothing outlets. At each outlet, you sell three types of products: budget items, mid-range, and high fashion. You have decided to investigate if sales of these types differ by store. To do this, you retrieved a list of sales at all three stores and created a dataset also recording which store sold which item. Conduct a test of independence to investigate this. The contingency table from your records appears below.

\begin{array}{|c|l|l|l|l|}\hline & \text { West Outlet } & \text { East Outlet } & \text { South Outlet } & \text { Total } \\\hline \text { Budget } & 12 & 30 & 48 & 90 \\\hline \text { Mid-Range } & 48 & 26 & 21 & 95 \\\hline \text { High Fashion } & 26 & 35 & 24 & 85 \\\hline \text { Total } & 86 & 91 & 93 & 270 \\\hline\end{array}

1) What is the research question?
2) What are the hypotheses?
3) What are the degrees of freedom?
4) What is the critical value for this test?
5) State the formal results of the test.
6) Should you compute a measure of the overall effect size? How do you know? If so, calculate this effect size.
7) State all appropriate conclusions.

χ2 Tests Are Sensitive to Small Cell Sizes

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χ² Tests Are Sensitive to Small Cell Sizes

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