Discussion:
You are the member of the marketing team at Sara Bellum's Pizza - the pizza for people who think too much!! Your mission is to evaluate two locations and determine if there is any difference in their suitability as locations for the next Sara Bellum Pizza restaurant. You will use a level of significance of 0.05.
The locations are in the same neighborhood. There is site A and site B. It has been determined that a best measure of the success of a Sara Bellum Pizza restaurant is based on the pizza purchasing tendencies of those folks in a 1 mile radius of the store. Specifically - if they buy pizza at least once in the past two weeks they are considered a frequent purchaser. Residents in a one mile radius of each prospective location were asked about their pizza purchase tendencies. Residents around site A indicated that 240 of them had bought pizza in the past two weeks- and 260 of them did not. Around site B -- 255 residents indicated that they had bought pizza in the past two weeks and 245 of them indicated that they did not.
(A) Present the contingency table for this information about sites A and B and good preference and poor preference.
(B) What is the null hypothesis for the problem you have been asked to solve?
What is the alternate hypothesis?
What is the critical value for the chi-squared distribution?
What is the decision rule?
(C) Calculate the chi-squared value.