A Large Carpet Store Wishes to Determine If the Brand

question 2

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: $$\begin{array} { | l | c | c | c | } \hline & \multicolumn{3}{|c|} { \text { Brand of Carpet } } \\\hline \text { Family income } & \text { Brand A } & \text { Brand B } & \text { Brand C } \\\hline \text { High income } & 65 & 32 & 32 \\\hline \text { Middle income } & 80 & 68 & 104 \\\hline \text { Low income } & 25 & 35 & 59 \\\hline\end{array}$$ 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:

Shareholders

Individuals or entities that legally own one or more shares of stock in a public or private corporation.

Incorporation

Incorporation is the process of legally forming a corporation or company, which is then recognized as a separate legal entity from its owners.

Derivative Action

A lawsuit in which certain shareholders are given the right to launch a civil action against the directors on behalf of an injured corporation; also called a representative action.

Fraudulent Acts

Intentional deception made for personal gain or to damage another individual.