SOLUTION: This is not in a textbook. Can you help? The owner of a car dealership wants to determin whether there is a relation between the income level and the type of vehicle purchased i

Question 131715: This is not in a textbook. Can you help?
The owner of a car dealership wants to determin whether there is a relation between the income level and the type of vehicle purchased in their dealership. He randomly sampled 500 car buyers and obtained the folliwing data:
Income level SUV/minivan Midsize compact
0-$30K 13 71 106
$30-$60K 33 76 45
$60-+ 66 59 31
At the .05 level of significance determin whether there is a relation between the income level and the type of vehicl purchased.
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
The owner of a car dealership wants to determin whether there is a relation between the income level and the type of vehicle purchased in their dealership. He randomly sampled 500 car buyers and obtained the folliwing data:
income.level SUV/minivan Midsize compact
0-$30K........ 13......... 71..... 106
$30-$60K...... 33......... 76...... 45
$60-+......... 66......... 59...... 31
At the .05 level of significance determine whether there is a relation between the income level and the type of vehicle purchased.
-------------
Ho: the factors are independent
Ha: the factors are dependent
-------------
Run a Ch-Sq Test on the data with alpha=5%; df= 2*2=4
Critical value = +/- 2.776
---------------------
Test statistic: 85.301
p-value = 1.309x10^-17
--------------
Conclusion: Since p-value is less than 5%, Reject Ho.
The factors are dependent.
===========================
Cheers,
Stan H.

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