A market research firm collected data on preferences of three import SUV’s by ag

Question

A market research firm collected data on preferences of three import SUV’s by age group. The following table summarizes the Chi-Square test statistics to determine if preference and age group are independent.

Some results using the Excel function CHISQ.INV.RT are shown below:

CHISQ.INV.RT(0.10,3) = 6.25

CHISQ.INV.RT(0.10,4) = 7.78

CHISQ.INV.RT(0.10,6) = 10.64

CHISQ.INV.RT(0.10,7) =12.02

Using a level of significance of 0.10, what conclusion should be reached?

There is a significant difference in the mean import preference among age groups

There is no significant difference in the mean import preference among age groups

Import preference and age group are independent

Import preference and age group are not independent

A.

There is a significant difference in the mean import preference among age groups

B.

There is no significant difference in the mean import preference among age groups

C.

Import preference and age group are independent

D.

Import preference and age group are not independent

Chi Squared Statistic BMW MB Porshe Total 20-25 25-30 30-35 35-40 Total 3.1359482580.902065081 0.6126935 4.650707 0.4678069810.006356711 0.39868160.872845 0.3740906980.0039455450.329889 0.707925 2.646474446 0.691809311 0.5864266 3.92471 6.6243203831.6041766481.9276907 10.15619

Explanation / Answer

here degree of freeedom =(row-1)*(column-1) =(4-1)*(3-1)=6

as crtiical value CHISQ.INV.RT(0.10,6) =10.64

as test statsitic 10.15619 is not higher then critical value

option C is correct

Import preference and age group are independent

C.

Import preference and age group are independent

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