Fast-food restaurants are always looking for ways to cut down on expenses. Believe it or not, such restaurants may be able to decrease yearly expenses simply by decreasing the size of the paper napkins they provide to patrons. (Such a change also puts the restaurants in a more environmentally friendly position.) Papel Paper Products, a major paper company hoping to infiltrate the restaurant supply market, is considering pitching the smaller-napkin idea to potential restaurant clients.
To determine the receptiveness of different restaurants to the idea, Papel surveyed 400 fast-food establishments chosen at random, and looked at the data according to two variables:type of fast-food restaurant ("burger/sandwich", "Chinese/Mexican", or "other") andattitude toward the smaller-napkin idea ("receptive" or "not receptive.")
The data are summarized in the contingency table below. Each of the 6 cells of the table contains three numbers: the first number is the observed cell frequency (fO); the second number is the expected cell frequency (fE) under the assumption that the two variablestype of fast-food restaurant andattitude toward the smaller-napkin idea are not associated; and the third number is the following value.
=−fOfE2fE−Observed cell frequencyExpected cell frequency2Expected cell frequency
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