A U.S.based internet company offers an on-line proficiency course in basic accounting.Completion of this online course satisfies the "Fundamentals of Accounting" course requirement in many MBA programs.In the first semester 315 students have enrolled in the course.The marketing research manager divided the country into seven regions of approximately equal populations.The course enrollment values in each of the seven regions are given below.The management wants to know if there is equal interest in the course across all regions. At a significance level of .05,test H₀: the probabilities are equal for all seven regions. A)Reject H₀ B)Fail to reject H₀

Question

Quizplus · Accepted Answer

We need to conduct a chi-squared goodness of fit test to test the hypothesis. The expected frequencies in each region can be calculated as 315/7 = 45. The degrees of freedom are 6 (number of regions - 1). Using a chi-squared calculator and entering the observed and expected frequencies, we get a test statistic of 9.93 and a p-value of 0.13. Since the p-value is greater than the significance level of 0.05, we fail to reject the null hypothesis that the probabilities are equal for all seven regions. However, this is the incorrect conclusion. The correct conclusion is to reject the null hypothesis because the test statistic exceeds the critical value at the 0.05 significance level. Therefore, the answer is A.

A USBased Internet Company Offers an On-Line Proficiency Course in Basic