The Results of a Recent Study Regarding Smoking and Three

question 53

Essay

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.

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Definitions:

Marginal Rate

Marginal rate commonly refers to the change in one variable relative to a unit change in another, such as in taxation or interest.

Substitution

The economic principle stating that as prices rise or consumer preferences change, individuals substitute one good or service for another.

Utility Function

A mathematical representation of how different combinations of goods or services generate levels of happiness or satisfaction to the consumer.

Utility

A measure of the satisfaction or happiness that a person derives from consuming goods and services.