It has been reported that 10.3% of U.S. households do not own a vehicle, with 34.2% owning 2 vehicles, and 17.1% owning 3 or more vehicles. The data for a random sample of 100 households in a resort community are summarized in the frequency distribution below. At the 0.05 level of significance, can we reject the possibility that the vehicle-ownership distribution in this community differs from that of the nation as a whole?

Question

It has been reported that 10.3% of U.S. households do not own a vehicle, with 34.2% owning 2 vehicles, and 17.1% owning 3 or more vehicles.  The data for a random sample of 100 households in a resort community are summarized in the frequency distribution below.  At the 0.05 level of significance, can we reject the possibility that the vehicle-ownership distribution in this community differs from that of the nation as a whole?
  Number of		Numberof 
Vehicles Owned		Households
0	                   20
1	                   35
2	                   23   
3  or more	          22
Total	   	          100

SraJMcGin · Answer

It would indeed depend upon the "sample" included in the survey. Resort area? Those people would be wealthier by far than in the "barrio" for example. If at the end of this post you tried to "copy and paste" it does not usually work here. You will have to type the rest out.

Sra

Vannessa · Answer

In a test of the independence of two variables, one of the variables has two possible categories and the other has three possible categories. What will be the critical value of chi-square if the test is to be carried out at the o.025 level? At the 0.05 level?