TABLE 12-7
Data on the percentage of 200 hotels in each of the three large cities across the world on whether minibar charges are correctly posted at checkout are given below. At the 0.05 level of significance,you want to know if there is evidence of a difference in the proportion of hotels that correctly post minibar charges among the three cities.
-True or False: When using the χ² tests for independence,you should be aware that expected frequencies that are too small will lead to a large Type I error.

Question

TABLE 12-7
Data on the percentage of 200 hotels in each of the three large cities across the world on whether minibar charges are correctly posted at checkout are given below.

At the 0.05 level of significance,you want to know if there is evidence of a difference in the proportion of hotels that correctly post minibar charges among the three cities.
-True or False: When using the χ² tests for independence,you should be aware that expected frequencies that are too small will lead to a large Type I error.

Quizplus · Accepted Answer

The χ2 test for independence assumes that expected frequencies in each cell should be greater than 5. If expected frequencies are too small, the test can be invalid, and this can increase Type I error (rejecting the null hypothesis when it is true).

TABLE 12-7 Data on the Percentage of 200 Hotels in Each of Each