Use A $X^2$ Test to Test the Claim That in the Given Contingency

question 47

Essay

Use a $X^2$
test to test the claim that in the given contingency table, the row variable and the
column variable are independent. Tests for adverse reactions to a new drug yielded the results
given in the table. At the 0.05 significance level, test the claim that the treatment (drug or
placebo)is independent of the reaction (whether or not headaches were experienced). $$\begin{array} { r | c c } & \text { Drug } & \text { Placebo } \\\hline \text { Headaches } & 11 & 7 \\\text { No headaches } & 73 & 91\end{array}$$

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Definitions:

Accounts Receivable

Outstanding payments from customers to a firm for delivered or utilized goods or services awaiting settlement.

Merchandise Return

The process whereby customers return previously purchased merchandise to the seller for a refund, store credit, or exchange.

Selling Expenses

Costs incurred directly and indirectly in selling a product, such as commissions, advertising, and promotional materials.

Advertising Merchandise

Promotional items branded with a logo or slogan and distributed as part of a marketing strategy.