A Large Carpet Store Wishes to Determine If the Brand

question 126

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: $$\begin{array}{l}\text { Brand of Carpet }\\\begin{array} { | l | c c c | } \hline \text { Family Income } & \text { Brand A } & \text { Brand B } & \text { Brand C } \\\hline \text { High Income } & 65 & 32 & 32 \\\text { Middle Income } & 80 & 68 & 104 \\\text { Low Income } & 25 & 35 & 59 \\\hline\end{array}\end{array}$$ At the 5% level of significance,can you conclude that the brand of carpet purchased is related to the purchaser's family income?
H₀: ____________________________________________________________
H₁: ____________________________________________________________
Test statistic = ____________________
Critical Value = ____________________
Conclusion: ____________________________

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Definitions:

Account

A record summarizing all the transactions pertaining to a single item in the accounting equation.

Lockbox Services

Bank-provided services that expedite the collection and processing of account receivable payments by having them sent directly to a secure post office box.

Collection Funds

Monies that are being gathered or have been gathered for a specific purpose, often related to financial transactions or payments.

T-Bills

Short-term government securities issued at a discount from par value, which mature and pay back the full face value.