Saeko has a yarn shop and wants to test her theory on what types of colors she is selling.
She believes that Black, White, Primary Colors and Tertiary colors sell in equal amounts.
The primary colors are blue, red, and yellow; while the tertiary colors are Brown, Green, and Purple.
Test Saeko's theory using the 5 step hypothesis testing analysis and Chi Square at the .10 level of significance.
(OptionalUse the "Pivot Table Data" tab to create a pivot table that shows Saeko the number of yards that were sold in the various yarn types during the busiest weekend of her shop last year.
Here is the pivot table that you should have created. It is optional so that you can practice your pivot table skills.
Row Labels Count of Color Type Sum of Yards
Black 23 35856
Blue 16 17053
Brown 13 13426
Green 12 12509
Purple 12 12131
Red 8 8393
White 26 37666
Yellow 12 12874
(blank)
Grand Total 122 149908
1)Using the pivot table that you just created, fill in the blanks in the following table:
Primary Colors consists of the sum of Blue, Red, and Yellow yarn sold Tertiary Colors consists of the sum of Brown, Green, and Purple Colors Sold.
The Total in this chart must equal the Grand Total, Cell D19 in the above table.
Black
White
Primary Colors
Tertiary Colors
Total
This table represents the observed data in the Chi Square analysis.
Find the Expected values for each of the colors. Saeko expects that the colors sell in equal amounts.
Color Type Sum of Yards
Black
White
Primary Colors
Tertiary Colors
Total
Subtract the Expected values from the observed values
Color Type Sum of Yards
Black
White
Primary Colors
Tertiary Colors
Square the values just found
Color Type Sum of Yards
Black
White
Primary Colors
Tertiary Colors
Divide each square by the expected value and add together
Color Type Sum of Yards
Black
White
Primary Colors
Tertiary Colors
Total
2)This total is your Chi Square test statistic
Use the 5 step hypothesis testing procedure to determine if Saeko's hypothesis that the colors sell in equal amounts is true.
What is the null hypothesis?
What is the alternative hypothesis?
What is the level of significance?
3)What is the Chi Square test statistic?
4)What is the Chi Square critical Value? Use =CHISQ.INV()
What is your answer to Saeko?
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