The Oxnard Retailers Anti-Theft Alliance (ORATA)published a study that claimed the causes of disappearance of inventory in retail stores were 30 percent shoplifting,50 percent employee theft,and 20 percent faulty paperwork.The manager of the Melodic Kortholt Outlet performed an audit of the disappearance of 80 items and found the frequencies shown below.She would like to know if her store's experience follows the same pattern as other retailers. Under the null hypothesis that her store follows the published pattern,the expected number of items that disappeared due to shoplifting is:
A) 16.
B) 40.
C) 24.

Question

The Oxnard Retailers Anti-Theft Alliance (ORATA)published a study that claimed the causes of disappearance of inventory in retail stores were 30 percent shoplifting,50 percent employee theft,and 20 percent faulty paperwork.The manager of the Melodic Kortholt Outlet performed an audit of the disappearance of 80 items and found the frequencies shown below.She would like to know if her store's experience follows the same pattern as other retailers.  Under the null hypothesis that her store follows the published pattern,the expected number of items that disappeared due to shoplifting is:
A) 16. 
B) 40. 
C) 24.

Quizplus · Accepted Answer

According to the ORATA study, 30% of disappearance of inventory is due to shoplifting, which means out of 80 items, on average 24 items should be due to shoplifting. Therefore, the expected number of items that disappeared due to shoplifting is 24 (Choice C).

The Oxnard Retailers Anti-Theft Alliance (ORATA)published a Study That Claimed