The billing department of a national cable company accepts payment in one of four ways: in person
Question:
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.
Step by Step Answer:
Business Statistics
ISBN: 9781292220383
10th Global Edition
Authors: David Groebner, Patrick Shannon, Phillip Fry