The Results of a Recent Study Regarding Smoking and Three

question 11

Essay

The results of a recent study regarding smoking and three types of illness are shown in the following table.
$\begin{array}{lrr}\text { Illness } & \text { Non-Smokers } & \text { Smokers } &\text { Totals }\\\text { Emphysema } & 30 & 90&120 \\\text { Heart problem } & 70 & 210&280 \\\text { Cancer } & 100 & 300&400\\\text { Totals }&200&600&800\end{array}$ We are interested in determining whether or not illness is independent of smoking.
a. State the null and alternative hypotheses to be tested.
b. Show the contingency table of the expected frequencies and determine the test statistic.
c. The null hypothesis is to be tested at 95% confidence. Determine the critical value for this test.
d. What do you conclude?

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Definitions:

Financial Theories

Concepts and models that explain how financial markets operate, including how securities are priced and how financial decisions impact markets.

IPO

stands for Initial Public Offering, the process by which a private company goes public by offering its shares to the general public for the first time.

Bargaining Power

The capability of one party in negotiations to influence the terms and conditions in their favor.

Cash Flow

The total amount of money being transferred into and out of a business, considered essential for maintaining operations and fulfilling financial commitments.