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Suppose a credit card company would like to determine if the type of credit card influences the payment status of a customer's account. The
Suppose a credit card company 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. Complete parts a. through c. below. Click the icon to view the contingency table. a. Using = 0.025, perform a chi-square test to determine if the credit card type and payment status are independent of one another. Identify the null and alternative hypotheses for a chi-square test of independence based on the information in the table. Choose the correct answer below. A. Ho: Credit card type and payment status are independent of one another. H: Credit card type and payment status are not independent of one another. B. Ho: Credit card type and payment status are not independent of one another. H: Credit card type and payment status are independent of one another. C. Ho: The variables Standard, Gold, Platinum, 30 days or less, 3160 days, and 61 days or more are independent. H: At least one of the variables is not independent. D. Ho: The variables Standard, Gold, Platinum, 30 days or less, 3160 days, and 61 days or more are independent. H: None of the variables are independent. Find the chi-square test statistic. x = 1.60 (Round to two decimal places as needed.) Using a = 0.025, find the chi-square critical value, X. x = 11.14 (Round to two decimal places as needed.) Determine the result of the test. The test statistic X is less than the critical value X2, so do not reject the null hypothesis. b. What conclusions can be made based on these results? There is evidence to indicate that credit card type and payment status are not independent of one another. at least one of the variables is not independent. credit card type and payment status are independent of one another. none of the variables are independent. Contingency table Card Type Days Overdue Standard Gold Platinum 30 days or less 31-60 days 61 days or more 78 36 30 12 9 8 14 7 6 Print Done
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