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Chi square test for independence

A recent study by a large retailer designed to determine whether there was a relationship between the importance a store manager placed on advertising and the size of the store revealed the following sample information:

Observed Frequencies (sample)

Important Not Important Total
Small 40 52 92
Medium 106 47 153
213 131 344

What kind of test is this and why did you choose what you just listed?

What is your conclusion? Use the .05 significance level. Be sure to show all the steps of the test.

Solution Summary

Step by step method for testing the hypothesis under 5 step approach is discussed here. Excel template for each problem is also included. This template can be used to obtain the answers of similar problems.