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Problem 7 [10 points = 4 + 3 + 3] A two-by-two contingency table contains summaries obtained from n = 500 patients. Two binary vari- ables, X and Y were processed, where X takes values "Smoker" or "Non-Smoker" and Y identifies blood pressure as "High" or "Normal". The summaries are presented below. High Normal Row Sum Smokers 50 50 100 Non-Smokers 150 250 400 Column Sum 200 300 500 1. Estimate expected counts and show them in the table similar to observed frequencies. 2. Evaluate the x2-test statistic for independence between X and Y. 3. At significance level a = 0.05, do you have sufficient evidence that smoking and blood pressure may be related (dependent) variables? Show critical value and formulate rejection rule. Solution