The results of a recent study regarding smoking and three types of illness are shown in the following table.
We are interested in determining whether or not illness is independent of smoking.
a.State the null and alternative hypotheses to be tested.
b.Show the contingency table of the expected frequencies.
c.Compute the test statistic.
d.The null hypothesis is to be tested at 95% confidence.Determine the critical value for this test.What do you conclude?
e.Determine the p-value and perform the test.
Definitions:
Loss
The negative financial result from a business's operations when costs exceed revenues.
Issuing Bonds
The process by which a company or government raises capital by selling bonds to investors, incurring debt that must be repaid over time with interest.
Stockholders
Individuals or institutions that own at least one share of a company's stock, essentially owning a portion of the company.
Tax Deductible
Refers to expenses that can be subtracted from gross income to determine taxable income, thereby reducing the overall tax liability.
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