Q.6

Question

A study of identity theft looked at how well consumers protect themselves from this increasingly prevalent crime. The behaviors of 61 randomly selected  college students were compared with the behaviors of 59 randomly selected non students.39 One of the questions was “When asked to create a password, I have used either my mother’s maiden name, or my pet’s name, or my birth date,

or the last four digits of my social security number, or a series of consecutive numbers.” For the students, 22 agreed with this statement while 30 of the nonstudents agreed.

a) Display the data in a two-way table and perform

the appropriate chi-square test. Summarize the results.

(b) Reanalyze the data using the methods for comparing two proportions that we studied in Chapter 10. Compare the results and verify that the chi-square

statistic is the square of the z statistic.

Step-by-Step Solution

Verified
Answer

(a) The value of p is above significant level


b) As per the results we can conclude that the chi-square test statistic is the square of z-statistic.


1Part (a) step 1 : Given information

No of consumers=120

No of students agreed =width="19" style="max-width: none; vertical-align: -4px;" 22

No of students  non agreed =68

2Part (a) step2 : calculation


The formula to compute the chi-square test statistic is:

χ2=(OE)2E


From given information, table as follows:


agreednon agreedtotal
student223961
non student302959
total52width="19" style="max-width: none; vertical-align: -4px;" 68120

 

From this expected frequencies:


agreednon 
agreed
total
student26.433334.566761
non student25.566733.433359
total5268120


The hypotheses are:

H0: No association exists between the group

Ha: An association exists between the group


The chi-square test statistic could be calculated as:


χ2=(2226.433)226.433+(3634.5667)234.5667+...+(2934.5667)233.4333       =2.6687


The degree of freedom is:

 Degree of freedom =( Number of rows-1) ( Number of columns- 1)                                   =(2-1) (2-1)                                   =1

The chi-square table p-value at 6 degrees of freedom is 0.102.

The p-value is above the level of significance.  At the 5% significance level, there is sufficient evidence to support the claim.

3Part (b) step 1: Given information

The chi-square test statistic is equal to the square of the z-statistic.

4Part (b) step2 : calculation


The null and alternative hypotheses are:

H0:p1=p2Ha:p1p2

The proportion of students and non-students are:

P1=2261=0.3607

P2=3059=0.5085

The output obtained using the Ti-83 plus calculator is:




The p-value is 0.1023 based on the above output.

The p-value is above the level of significance. 

At the 5% significance level, there is insufficient evidence to establish that there is a difference in two population proportions. The chi-square test statistic might now be verified as follows:

The z-test statistic in this case is -1.634.

Take the square of the z-statistic as follows:

(z-statistic)=(1.634)2 

=2.669

The resultant value is identical to the chi-square test statistic in this case. As a result, the chi-square test statistic is equal to the square of the z-statistic.