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

question 46

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. 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).
$\begin{array}{r|cc} & \text { Drug } & \text { Placebo } \\\hline \text { Headaches } & 11 & 7 \\\text { No headaches } & 73 & 91\end{array}$

---

Definitions:

Accounts Receivable

Money owed by customers to a company for goods or services that have been delivered or used but not yet paid for.

Credit Sales

Sales for which payment is not received at the time of purchase, allowing customers to pay at a later date, thereby creating receivables for the seller.

Cash Sales

Transactions where payment is made in cash at the time of purchase, without the extension of credit.

Inventory

The goods and materials that a business holds for the ultimate purpose of resale or production.