You want to know if car ownership is independent. a table below gives the number of cars versus telephones owned in a two way table. Given the data, are telephone ownership and automobile ownership independent? Use a chi squared test to verify your decision.
ZERO ONE TWO or more TOTAL
ZERO 1000 900 100
PHONES ONE 1500 2600 500
OWNED 2 or more 500 2500 400
It applies Chi Squared Test to determine whether the telephone ownership and automobile ownership are independent or not.