Chi square test
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The owner of a car dealership wants to determine whether there is a relation between the income level and the type of vehicle purchased in their dealership. He randomly sampled 500 car buyers and obtained the following data:
Key:
a) Income Level
b) SUV/Minivan
c) Midsize
d) Compact
a)up to $30K/yr
b) 13
c) 71
d) 106
a) $30K-$60K
b) 33
c) 76
d) 45
a) more than $60K/yr
b) 66
c) 59
d) 31
At the .05 level of significance, determine whether there is a relation between the income level and the type of vehicle purchased. Show your work step by step.
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Solution Summary
The solution provides step by step method for the calculation of chi square test statistic and P value . Formula for the calculation and Interpretations of the results are also included.
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