A study was recently done in the United States in which car owners were asked to indicate whether their most recent car purchase was a U.S.car,a German car,or a Japanese car.The people in the survey were divided by geographic region in the United States.The following data were recorded.
Given this situation,to test whether the car origin is independent of the geographical location of the buyer,the critical value for alpha = .10 is 14.6837.
Definitions:
Purchasing Power Parity
An economic theory that compares different countries' currencies through a "basket of goods" approach to determine exchange rate effects on goods' prices.
Exchange Rate
The value of one currency for the purpose of conversion to another, indicating how much of one currency can be exchanged for one unit of another currency.
Canadian Dollar
The official currency of Canada, represented by CAD or C$, and divided into 100 cents.
Exchange Rate
The price at which one currency can be exchanged for another currency in the foreign exchange market.
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