A Large Carpet Store Wishes to Determine If the Brand

question 75

Essay

A large carpet store wishes to determine if the brand of carpet purchased is related to the purchaser's family income. As a sampling frame, they mailed a survey to people who have a store credit card. Five hundred customers returned the survey and the results follow: $$\begin{array} { | l | c c c | } \hline & { \text { Brand of Carpet } } \\\hline \text { Family Income } & \text { Brand } \mathrm { A } & \text { Brand B } & \text { Brand C } \\\hline \text { High income } & 65 & 32 & 32 \\\hline \text { Middle income } & 80 & 68 & 104 \\\hline \text { Low income } & 25 & 35 & 59 \\\hline\end{array}$$ At the 5% level of significance, can you conclude that the brand of carpet purchased is related to the purchaser's family income?

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Definitions:

IO Perspective

Refers to the Industrial Organization perspective, which examines the behavior of firms, market structures, and their interactions within an industry.

Firm's Profitability

a measure of how effectively a company generates profit compared to its revenues, indicating its financial health and sustainability.

Different Industries

Various sectors of the economy that produce different types of goods and services, such as manufacturing, technology, and healthcare.

Higher Profits

The increased financial gain achieved by a business when its revenue exceeds its expenses by a greater margin than before.