Suppose That We Are Studying the Purchasing Behavior of Individuals

question 20

Essay

Suppose that we are studying the purchasing behavior of individuals buying dog food. We hypothesize that half the dog food purchases will be the big name brand, "Lassie Chow" and that the remaining purchases will be divided equally between two local brands, "Bow Wow Chow" and "Woof Woof Wafers."
a)Define appropriate statistical variables, and use them to state the null and alternative hypothesis that would be used to decide if there was convincing evidence against the hypothesized distribution of purchases across the three brands.
b)Suppose that each individual in a random sample of 200 purchasers provides information about his or her choice of brand. For each category, what are the expected values?
c)How many degrees of freedom are associated with the chi-squared goodness-of-fit statistic?
d)Suppose that X² = 6.10. What can be said about the P-value for this hypothesis test?

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Definitions:

Consumer Income

Refers to the total earnings received by consumers, including wages, salaries, benefits, and any other income sources, influencing their purchasing power and spending behaviors.

Price Increase

A situation where the cost of goods or services rises over a period of time.

Supply Elasticity

Measures how the quantity supplied of a good responds to a change in the price of that good.