16. A market researcher for an automobile company suspects differences in preferred color between male and female buyers. Advertisements targeted to different groups should take such differences into account, if they exist. The researcher examines the most recent sales information o f a particular car th a t comes in three colors.

Color Gender of Automobile Buyer Male Female Silver 470 280 Black 535 285 Red 495 350

a. Specify the competing hypotheses to determine whether color preference depends on gender.

b. Compute the value o f the test statistic.

c. Specify the critical value at the 1% significance level.

d. Does your conclusion suggest that the company should target advertisements differently for males versus females? Explain.