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:

Isolating Variances

A process in managerial accounting for identifying and analyzing differences between actual and expected performance.

Direct Materials

Raw materials directly traceable and assignable to a manufactured product as it is being produced.

Direct Labour

The labor costs directly attributable to the production of goods or the provision of services.

Materials Price Variance

The difference between the actual cost of materials and the standard cost, indicating how much was saved or overspent on materials.