The following sample data reflect shipments received by a large firm from three different vendors and the quality of those shipments. (You may find it useful to reference the appropriate table: chi-square table or F table)

Vendor	Defective	Acceptable
1	14	112
2	10	70
3	22	150

a. Select the competing hypotheses to determine whether quality is associated with the source of the shipments.

A). H₀: Quality and source of shipment (vendor) are independent.; H_A: Quality and source of shipment (vendor) are dependent.

B). H₀: Quality and source of shipment (vendor) are dependent.; H_A: Quality and source of shipment (vendor) are independent.

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 =

b-2. Find the p-value.

A). p-value > 0.01

B). 0.01 p-value < 0.025

C). 0.025 p-value < 0.05

D). 0.05 p-value < 0.10

E). p-value 0.10

b-3. At the 1% significance level, what is your conclusion?

A). Reject H₀; we can conclude that quality and source of shipment (vendor) are dependent.

B). Reject H₀; we cannot conclude that quality and source of shipment (vendor) are dependent.

C). Do not reject H₀; we can conclude that quality and source of shipment (vendor) are dependent.

D). Do not reject H₀; we cannot conclude that quality and source of shipment (vendor) are dependent.

c.Should the firm be concerned about the source of the shipments?

A). Yes

B). No