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2. (14 points) A hand cream company was interested in whether customers' preferences for hand cream are related to their parental status. On a recent
2. (14 points) A hand cream company was interested in whether customers' preferences for hand cream are related to their parental status. On a recent survey of a random sample of 304 customers, the company asked: "Do you have children under five years of age that live with you?" The customer answered "Yes" if they had children under 5 years of age, and "No" if they did not. The customers were also asked: "What is the most important characteristic you consider when choosing a hand cream?" The answer choices were: nice scent; long- lasting; non-greasy; and all-natural. The company would like you to perform a Test of Independence to determine if hand cream preference is related to parental status, at the a = 0.05 significance level. Is there evidence that these two variables are related in the population of customers? The observed frequencies from the sample are given in the following table: Observed Frequencies (f) Children under 5 at home? Row Hand Cream Preference Yes No Total nice scent 36 48 long-lasting 28 30 non-greasy 35 43 all-natural 52 32 Column Total Here is the calculation table for the Chi-Square test statistic: Children Observed Expected Difference Preference at home Frequency Frequency squared/expected nice scent Yes nice scent No long-lasting Yes long-lasting No non-greasy Yes non-greasy No all-natural Yes all-natural No Xtest = After you calculate and fill out the tables, write the four steps for the hypothesis test on the next page. You need only report the test statistic in Step 2, since the calculation is shown at length above
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