An analyst is trying to determine whether the prices of certain stocks on the NASDAQ are independent of the industry to which they belong. She examines four industries and classifies the stock prices in these industries into one of three categories (high-priced, average-priced, low-priced).
Industry I II III IV
Stock Price
High 21 12 20 16
Average 26 18 17 25
Low 10 15 8 14
a. Choose the competing hypotheses to determine whether stock price depends on the industry.
Ho: Stock price is dependent on the industry.; HA: Stock price is independent on the industry.
Ho: Stock price is independent of the industry.; HA: Stock price is dependent on the industry.
b-1. Calculate the value of the test statistic. (Round intermediate calculations to at least 4 decimal places and final answer to 3 decimal places.)
Test statistic