Suppose Capital One would like to determine if the type of credit card influences the payment status of a customer’s account. The following table indicates the card type for 200 randomly selected customers, along with the number of days their payments were overdue:

Card Type Days Overdue Standard Gold Platinum 30 days or less 76 40 30 31–60 days 12 10 7 61 days or more 12 8 5

a. Using a = 0.05, perform a chi-square test to determine if the credit card type and payment status are independent of one another.

b. What conclusions can be made based on these results?

c. Determine the p-value using Excel and interpret its meaning.

d. Verify your results using PHStat.

AppendixLO1