You have been hired to test whether the demand for a product that your client produces varies between two demographic markets – the Urban and Rural markets.

As such, in each market, you run a short survey that gauges customers' demand for your product and assigns them to one of three categories – (i) High (ii) Medium or (iii) Low.

You survey 80 people in the “Urban” market and find that their demand falls into the following “buckets”

High 42

Medium 20

Low 18

You survey 40 people in the “Rural” market time. Their demand for the product is reflected below.

High 18

Medium 10

Low 12

The Null hypothesis that you are asked to test is that "the demand for the product is INDEPENDENT of the whether the market is Urban or Rural.”

CALCULATE THE TEST STATISTIC FOR THE NULL HYPOTHESIS ABOVE:

Enter that answer below as a number with two significant decimal places (such as 8.94 or 2.34 or 213.45)

For the hypothesis and date above, what is the correct number of degrees of freedom for the Chi-Square distribution?