The billing department of a national cable company accepts payment in one of four ways: in person

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The billing department of a national cable company accepts payment in one of four ways: in person at a local office, by mail, by credit card, or by electronic funds transfer from a bank account. The cable company randomly sampled 400 customers to determine if there is a relationship between the customer’s age and the payment method used. The following sample results were obtained:

Age of Customer Payment Method 20–30 31–40 41–50 Over 50 In Person 8 12 11 13 By Mail 29 67 72 50 By Credit Card 26 19 5 7 By Funds Transfer 23 35 17 6 Based on the sample data, can the cable company conclude that there is a relationship between the age of the customer and the payment method used?

Conduct the appropriate test at the a = 0.01 level of significance.

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Business Statistics

ISBN: 9781292220383

10th Global Edition

Authors: David Groebner, Patrick Shannon, Phillip Fry

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