Use A $\chi ^ { 2 }$ Test to Test the Claim That in the Given Contingency

question 27

Essay

Use a $\chi ^ { 2 }$ test to test the claim that in the given contingency table, the row variable and the column variable are independent.
-Use the sample data below to test whether car color affects the likelihood of being in an accident. Use a significance level of 0.01. $$\begin{array} { c | c c c } & \text { Red } & \text { Blue } & \text { White } \\\hline \text { Car has been in } \\\text { accident } & 28 & 33 & 36 \\\begin{array} { c } \text { Car has not been } \\\text { in accident }\end{array} & 23 & 22 & 30\end{array}$$

---

Definitions:

Semi-Annually

Occurring or done twice a year, typically every six months.

Face Value

The nominal or dollar value stated on a security or financial instrument, such as a bond or stock, representing its worth at issuance or par value.

Interest Rate Risk

The risk of investment value changes due to variations in the level of interest rates.

Zero-Coupon

A bond that does not pay periodic interest and is issued at a substantial discount from its face value.