Add degrees of freedom
(Espanol) ClairLinx Wireless, a start-up cell phone company, is trying to decide if it should market specific phone service plans to specific groups of customers. ClairLinx divides its market of potential customers into three major groups: single, working; married, working; and retired. ClairLinx surveyed 500 potential customers (chosen at random) and asked each, "Of the following, which do you consider to be the most important feature in a cell phone service plan: free nights and weekends, free long distance and roaming, or free calls to customers with the same company?" So, there are two variables being considered: type of potential customer ("single, working"; "married, working"; or "retired") and choice of service plan feature ("free calls to other customers", "free nights and weekends", or "free long-distance and roaming"). Each of the 500 potential customers in the survey was categorized according to the service plan feature she considers most important and the customer group in which she appears. The data are summarized in the contingency table below. In the cells of this table are three numbers: the first number is the observed cell frequency (); the second number is the expected cell frequency (f) under the assumption that the two variables type of potential customer and choice of service plan feature are not related; and the third number is the following value. (So E) (Observedellfrequency Expectedellfrequency Expectedellfrequency The numbers labeled "Total" are totals for observed frequency. Part 1 Fill in the missing values in the contingency table. Round your expected frequencies to two or more decimal places, and round your SE values to three or more decimal places. Send data to Excel Choice of service plan feature X ? Free calls Free Free long to other nights and distance customers weekends and Total roaming 88 Single, working 78.30 150 1.202 43 53 Type of Married, 204 potential working 106.4 customer 0 0.021 29 52 65 Retired 27.74 42.05 76.21 146 0.057 2.354 1.649 Total 95 144 261 500 Part 2 Answer the following to summarize the test of the hypothesis that the two variables type of potential customer and choice of service plan feature are not related. For your test, use the 0.05 level of significance. (a) Determine the type of test 5 statistic to use. X Type of test statistic: (Choose one) (b) Find the value of the test statistic. (Round to two or more decimal places.) (c) Find the critical value for a test at the 0.05 level of significance. (Round to two or more decimal places.) (d) Can we conclude that the variables type of potential customer and choice of service plan feature are related? Use the 0.05 level of significance. Yes No