Question: ECCO (Electronic Controls Company) makes backup alarms that are used on such equipment as forklifts and delivery trucks. The quality manager recently performed a study involving a random sample of 110 warranty claims. One of the questions the manager wanted to answer was whether there is a relationship between the type of warranty complaint and the plant at which the alarm was made. The data are in the file called ECCO.
a. Calculate the expected values for the cells in this analysis. Suggest a way in which cells can be combined to assure that the expected value of each cell is at least 5 so that as many level combinations of the two variables as possible are retained.
b. Using a significance level of 0.01, conduct a relevant hypothesis test and provide an answer to the manager's question.