Test whether the relationship between the plan at retirement and residential area using Chi square test.
In a survey of 1500 residents of a particular county, each person was asked if he or she plans to relocate while reaching retirement age, and it was also recorded whether the person currently lives in a rural, suburban, or urban area of the county. The results of the survey are presented in the contingency table below.
Observed Frequencies







Plan at Retirement





Planning to relocate

Not planning to relocate

Totals

Residential Area

Rural

127

202

329

Suburban

384

117

501


Urban

358

312

670


Totals

869

631

1500


We are interested in determining whether there is the relationship between the plan at retirement and the residential area.
find out the expected frequencies. (Fill in the blanks in the table. One value is already supplied.)
At the 0.01 level of significance, is there evidence of a significant relationship between the plan at retirement and the residential area? In carrying out your work please include the following information:
Expected Frequencies







Plan at Retirement





Planning to relocate

Not planning to relocate

Totals

Residential Area

Rural

190.6

_______

329

Suburban

_______

_______

501


Urban

_______

_______

670


Totals

869

631

1500


a)status the Null hypothesis:Ho:
b)State the Alternative hypothesis: Ha:
c)Find Degrees of freedom
d)Compute the Chi Square Statistic and enter the value only in your posting.
Χ2 =?
e) Find Critical value.
f) State the Conclusion: Reject Ho? (Yes or No)