Market segmentation. The Chicago Female Fashion Study9 surveyed customers to determine characteristics of the “frequent” shoppers at different department stores in the Chicago area. Suppose you are a marketing manager at one of the department stores. You would like to know if a customer’s shopping frequency and her age are related.

Here are the data:

a) Is this a test of homogeneity or independence?

b) Write an appropriate hypothesis.

c) Are the conditions for inference satisfied?

d) The calculation yields , State your conclusion.

e) Given the standardized residuals in the table, state a complete conclusion.

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Shopping Frequency Shopping Frequency Age 18-24 25-44 45-54 55 or over Never/Hardly Ever 32 171 45 24 1-2 times/yr 18 134 40 37 3-4 times/yr 21 109 48 27 5 times/yr 39 134 71 50 Standardized Residuals Age 18-24 25-44 45-54 55 or over Never/Hardly Ever 0.3803 1.7974 -1.4080 -2.2094 1-2 times/yr -1.4326 0.7595 -0.9826 0.9602 3-4 times/yr -0.3264 -0.3264 -0.3151 0.9556 -0.2425 5 times/yr 1.1711 -2.1360 1.4235 1.4802