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Catherine Chao, Director of Marketing Research, is evaluating consumer acceptanc

ID: 3181329 • Letter: C

Question

Catherine Chao, Director of Marketing Research, is evaluating consumer acceptance of alternative toothpaste packages. She wonders whether acceptance is influenced by children in the household. Her staff prepared the following contingency table from a random sample of 100 households.  

Children in Household

Pre-teenagers

teenagers

none

Preferred

Pump

30

20

10

Package

Tube

10

10

20



Using a significance level of 0.01, the appropriate decision is ______________.

A. reject the null hypothesis and conclude there is no evidence of association between the two variables

B. do not reject the null hypothesis and conclude there is no evidence of association between the two variables

reject the null hypothesis and conclude there is evidence of association between the two variables

D. do not reject the null hypothesis and conclude there is evidence of association between the two variables

Children in Household

Pre-teenagers

teenagers

none

Preferred

Pump

30

20

10

Package

Tube

10

10

20

Explanation / Answer

The statistical software output for this problem is:

Contingency table results:
Rows: var1
Columns: None


Chi-Square test:

Since p - value is less than 0.01, we reject the null hypothesis and conclude that there is association between two variables.

Option C is correct.

Pre - Teenagers Teenagers None Total Preferred Pump 30 20 10 60 Packaged Tube 10 10 20 40 Total 40 30 30 100
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