The above data can be arranged in the form of a 2 x 2 contingency table as given below:
We set up the null hypothesis (H0) that the two attributes viz., ‘consumption of tea’ and the ‘community’ are independent. In other words, there is no significant difference between the consumption of tea among Hindu and non-Hindu families.
Calculation of (fe):
Since the calculated value of x2, viz., 15.24 is much greater than the tabulated value of x2 at .01 level of significance; the value of x2 is highly significant and null hypothesis is rejected.
Hence we conclude that the two communities (Hindu and Non-Hindus) differ significantly as regards the consumption of tea among them.