Help...please explain The option to buy extended warranties is commonplace with

Question

Help...please explain

The option to buy extended warranties is commonplace with most electronics purchases. But does the type of purchase affect a consumer's willingness to pay extra for an extended warranty? Data for 420 consumers who purchased digital cameras and laptop computers from a leading electronics retailer are summarized in the table. Which of the following statement is true? QA. The decision to purchase an extended warranty and type of electronics (digital camera or laptop computer) purchased are related. QB. The decision to purchase an extended warranty and type of electronics (digital camera or laptop computer) purchased are not independent. QC. The decision to purchase an extended warranty and type of electronics (digital camera or laptop computer) purchased are disjoint events. Q D. The decision to purchase an extended warranty and type of electronics (digital camera or laptop computer) purchased are mutually exclusive. Q E. The decision to purchase an extended warranty and type of electronics (digital camera or laptop computer) purchased are independent.

Explanation / Answer

The test hypothesis:

Null hypothesis: there is not related. (i.e. independent)

Alternative hypothesis: there is a related.

Yes   No   Total   Digital Camera Observed   30 42 72 Expected   30.00 42.00 72.00 (O - E)

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