Staples, a chain of large office supply stores

| November 19, 2015

Staples, a chain of large office supply stores, sells a line of desktop and laptop computers. Company executives want to know whether the demands for these two types of computers are dependent on one another. Each day’s demand for each type of computers is categorized as Low, Medium-Low, Medium-High, or High. The data shown in the table below is based on 200 days of operation. Based on these data, can Staples conclude that demands for these two types of computers are independent? Test at the 5% level of significance.

    desktops
    low med-low med-high high Total
laptops low 3 14 14 4 35
med-low 6 18 17 22 63
med-high 13 16 11 16 56
high 8 14 15 9 46
Total 30 62 57 51 200

What is the test value for this hypothesis test?

What is the critical value for this hypothesis test?

What is the conclusion for this hypothesis test? Choose one.

1. At the .05 level of significance, Staples can conclude that demands for these two types of computers are independent.

2. At the .05 level of significance, Staples can conclude that demands for these two types of computers are dependent.

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