Saeko has a yarn shop and wants to test her theory on what types of colors she is selling.

She believes that Black, White, the Primary Colors, and Tertiary colors sell in equal amounts.

Test Saeko’s theory using the 5 step hypothesis testing analysis and Chi Square at the .10 level of significance.

(optional) Use 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.

The pivot table should contain Color Type, Sum of Yards and Count of Color Type as Column Titles.

Here is the pivot table that you should have created. It is optional so that you can practice your pivot table skills.

Color Type Sum of Yards Count of Color Type

Black 19,762.00 23

Blue 8,127.00 20

Brown 8,027.00 13

Green 6,533.00 12

Purple 7,243.00 12

Red 5,194.00 10

White 17,649.00 26

Yellow 7,229.00 14

Grand Total 79,764.00 130

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 D16 in the above table.

Color Type Sum of Yards

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

This total is your Chi Square test statistic

2) 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?

What is the Chi Square test statistic? –

3) What is the Chi Square critical Value? Use =CHISQ.INV()

4) What is your answer to Saeko?

Saeko owns a yarn shop and want to expands her color selection.

Before she expands her colors, she wants to find out if her customers prefer one brand

over another brand. Specifically, she is interested in three different types of bison yarn.

As an experiment, she randomly selected 21 different days and recorded the sales of each brand.

At the .01 significance level, can she conclude that there is a difference in preference between the brands?

Misa’s Bison Yak-et-ty-Yaks Buffalo Yarns

343 365 360

308 368 346

349 351 381

304 339 306

348 366 314

346 331 307

Total 1,998.00 2,120.00 2,014.00

5) What is the null hypothesis?

What is the alternative hypothesis?

What is the level of significance?

6) Use Tools – Data Analysis – ANOVA:Single Factor

to find the F statistic:

7) From the ANOVA ooutput: What is the F value?

8) What is the F critical value?

9) What is your decision?

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